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Question
Allison Engines Corporation has established a target capital structure of 40 percent debt and 60 percent common equity. The firm expects to earn $150,000 in after-tax income during the coming year, and it will retain 30 percent of those earnings. What is the break point of retained earnings?
a. $175,000
b. $75,000
c. $112,500
d. $500,000
e. $250,000
Answer
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Related questions
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Q:
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