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Issue:

Miscellaneous

 

Written by:

Brock B

 

Date added:

September 7, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 901

 

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506 times

 

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We defined a break point and gave the formula for the break point. We reviewed the one page break point handout and indicated many concepts associated with this concept. You should review this handout to make sure that you have learned all of these concepts and ideas. Be sure to understand the breakdown of the financing components and understand this the break point concept works because we assume that we keep a firm's capital structure constant...
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Be sure to understand the breakdown of the financing components and understand this the break point concept works because we assume that we keep a firm's capital structure constant. On the simple break point example I want you to really understand the meaning of the $250,000 amount. This is the total financing, debt plus equity, that $100,000 in lower cost debt will support given a 40% debt capital structure...
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