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What is the break point of the retained earnings

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Reference no: EM132694458

ABC Corp. expects the retained earnings of $2 million. If the company's optimal capital structure is 60% equity and 40% debt, what is the break point of the retained earnings?

a. $3.33 million

b. $3.43 million

c. $3.03 million

d. $3.7 million

e. $2 million

Reference no: EM132694458

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