GQ earned $740,000 before taxes this year.The firm has a debt ratio of 30 percent, a marginal tax rate of 35 percent, and a dividend payout ratio of 40 percent.GQ has no preferred stock.What is GQ's break point for equity?
A) $634,286
B) $962,000
C) $412,286
D) $288,600
Correct Answer:
Verified
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