Solution-Calculate the break point in the cost of capital

Calculate the break point in the cost of capital schedule

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Reference no: EM132735917

Problem 1: Calculate the break point in the cost of capital schedule due to running out of retained earnings.

Particulars Amount ($)

Retained Earnings 120000
Proportion in Capital Structure 0.3
Breakpoint in Cost of Capital 400,000

Problem 2: If can raise 4million with retained earnings, and equity is 30% of the total, then how much is the total that can raise?

Reference no: EM132735917

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Calculate the break point in the cost of capital schedule

Reference no: EM132735917

Reference no: EM132735917

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