A corporation has $5,000,000 of 10 percent bonds and $3,000,000 of 12 percent of preferred stock. The

Question:

A has $5,000,000 of 10 percent bonds and $3,000,000 of 12 percent of preferred stock. The firm’s financial break even (assuming 40 percent tax rate) is?
1. 860K
2. 716K
3. 1.4MIL
4. 1.1MIL

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...