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Omega Inc Expects Its Net Income to Be $525,000 This Year

Question 26

Multiple Choice

Omega Inc. expects its net income to be $525,000 this year. The firm's dividend payout ratio is 60 percent. The firm is financed with 30 percent debt, and it has no preferred stock outstanding. What is the retained earnings break point for Omega Inc.?


A) $315,000
B) $450,000
C) $210,000
D) $300,000
E) $700,000

Correct Answer:

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