Question: E - Games 4 U Corp. is evaluating possible capital investments. Since capital budgeting is a key factor to create wealth, the board of directors
EGames U Corp. is evaluating possible capital investments. Since capital budgeting is a key factor to create wealth, the board of directors has assigned you with finding the break points in their capital structure. The firm can borrow up to $ in new debt before the interest rate increases. The tax rate is and common equity is of the target capital structure. There is no preferred equity. The forecast for Net Income this year is $ the firm will continue with its dividend payout ratio of the rest becomes retained earnings Calculate the break point in the MCC schedule for Common Equity. Enter your answer in the box below, to the nearest penny.
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