A company is weighing its options to use only Retained Earnings or to issue NEW...
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Accounting
A company is weighing its options to use only Retained Earnings or to issue NEW Stock for next year's capital budget needs.
| Target Capital Structure | |
| Debt | 37% |
| Preferred Stock | 17% |
| Common Equity | 46% |
| 100% | |
Net Income = $658,940
Payout Ratio = 72%
What is the company's BREAKPOINT (the largest capital budget available without selling NEW Stock)?
Group of answer choices
$401,093.91
$669,900.00
$428,736.00
$184,503.20
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