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A Firm Has Interest Expense of $145,000, Preferred Dividends of $25,000

Question 141

Multiple Choice

A firm has interest expense of $145,000, preferred dividends of $25,000, and a tax rate of 40 percent.The firm's financial break-even point is _________.


A) $186,667
B) $ 25,000
C) $170,000
D) $145,000

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