Question: What does the Break Point represent? A. The point where a firm moves from WACC 1 to WACC 2 . B. The maximum amount of

What does the Break Point represent?

A. The point where a firm moves from WACC1 to WACC2.

B. The maximum amount of capital that a firm can raise before they run out of retained earnings.

C. The total amount of capital that needs to be invested in a new project.

D. Both A and B are correct.

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