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    Principles of Managerial Finance
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    Exam 13: Leverage and Capital Structure
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    A Firm Has Interest Expense of $145,000, Preferred Dividends of $25,000
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A Firm Has Interest Expense of $145,000, Preferred Dividends of $25,000

Question 136

Question 136

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 breakeven point is ________.


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

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