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Your company is expected to earn $6.5 million in net income net year of which it will pay out 40% in dividends. If equity represents
Your company is expected to earn $6.5 million in net income net year of which it will pay out 40% in dividends. If equity represents 50% of your capital, what is the breakpoint in the MCC where new stock will have to be issued? Please show steps/equations used towards finding a solution. Thanks!
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