Multiple Choice
Your company is expected to earn $4.0 million in net income next year of which it will pay out 40% in dividends. If equity represents 50% of your capital, what is the breakpoint on the MCC where new stock will have to be issued?
A) $2.4 million
B) $3.2 million
C) $4.0 million
D) $4.8 million
E) $8.0 million
Correct Answer:
Verified
Correct Answer:
Verified
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