What is the financial breakeven point for each plan

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There are two financing plans available to the Small/Downey Construction Company summarized herewith:

                                                       Plan 1                 Plan 2

Interest Expense                        $25,000                $50,000

Preferred Dividend                           $3,000                  $1,500

Common shares outstanding          200,000                100,000

------Assuming a 40 percent tax rate, what is the financial breakeven point for each plan?

Reference no: EM13907412

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