The next year's net income of Byron Corporation is projected to be $21,000, and its payout ratio is 30 percent. Its target capital structure is 40 percent debt and 60 percent common equity. What is the retained earnings break point?
A) $35,000
B) $24,500
C) $6,300
D) $12,600
E) $8,400

Question

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The Answer of The next year's net income of Byron Corporation is projected to be $21,000, and its payout ratio is 30 percent. Its target capital structure is 40 percent debt and 60 percent common equity. What is the retained earnings break point?
A) $35,000
B) $24,500
C) $6,300
D) $12,600
E) $8,400

The Next Year's Net Income of Byron Corporation Is Projected