A firm has interest expense of $145,000, preferred dividends of $25,00

A firm has interest expense of $145,000, preferred dividends of $25,000, and a tax rate of 40 percent. The firm’s financial breakeven point is ________.

A) $ 25,000
B) $170,000
C) $186,667
D) $145,000

 

 

ANSWER

C

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