Sunrise Ltd. is an al-equity firm. The company has 9,700 shares of stock outstanding at a market price of $28 per share. The company has announced that it will issue $58,000 worth of debt and use the funds to repurchase shares of the outstanding stock. The interest rate on the debt will be 8 percent. What is the break-even EBIT?

Answer rating: 100% (QA)

To find the breakeven EBIT Earnings Before Interest and Taxes we need to determine the level of EBIT ... View the full answer