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11. Suppose that Apple is considering levering its firm because it is expecting a strong fiscal year. Apple is projecting an EBIT of $2 million

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11. Suppose that Apple is considering levering its firm because it is expecting a strong fiscal year. Apple is projecting an EBIT of $2 million for the upcoming year, and currently has a market value of assets of $10 million. Apple is currently financed exclusively with equity consisting of 100,000 shares outstanding at a market price of $100 per share. If the company is considering issuing $5 million in debt with a cost of debt of 10% to repurchase equity, the company's new interest expense will be and its break-even EBIT is ? The company's earnings per share (EPS) at the break even EBIT is while the fact that the company's projected EBIT > break-even EBIT suggests the company take on this capital restructuring. (a) $0;$1,000,000;$10 per share; should not (b) $500,000;$1,000,000;$10 per share; should (c) $500,000;$500,000;$10 per share; should (d) $500,000;$1,000,000;$20 per share; should not

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