J. Ross & Sons Inc. has a target capital structure of 40 percent debt, 10 percent preferred stock and 50 percent common equity. The bonds carry an 8 percent coupon (paid quarterly) and $1000 par value, mature in 20 years, and currently sell at a price of $686.86. Preferred stock currently sells for $90 per share and pays an annual dividend of $10 per share; however, the firm will net only $80 per share from the sale of new preferred stock. Ross expects to retain $15000 in earnings over the next year. Ross's common stock currently sells for $40 per share, but the firm will net only $34 per share from the sale of new shares. The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10 percent per year. The company's tax rate is 40 percent. How much new capital (from all sources) can Ross raise before it mus start selling new common shares? In other words, where is the breakpoint associated with retained earnings?: Your Answer: Answer units