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A Corporation Has $5,000,000 of 6 Percent Bonds and $9,600,000

Question 60

Multiple Choice

A corporation has $5,000,000 of 6 percent bonds and $9,600,000 of 5 percent preferred stock outstanding.The firm's financial breakeven (assuming a 21 percent tax rate) is ________.


A) $637,595
B) $1,387,595
C) $907,595
D) $780,000

Correct Answer:

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