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

E-Games 4 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 $25,405,842 in new debt before the interest rate increases. The tax rate is 30.7% and common equity is 46% of the target capital structure. There is no preferred equity. The forecast for Net Income this year is $41,270,680, the firm will continue with its dividend payout ratio of 37%(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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