XYX corporations capital structure calls for 60% debt and 40% common equity. The companys cost of debt is 8%. Retained earnings are estimated to be $160 million. The companys cost of retained earnings is 14% and the cost of external common equity is 16%. The corporate tax rate is 30%. Compute XYZ's RE break point. Group of answer choices

$400 million

$500 million

$600 million

$700 million