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1.(8) Roberts, Inc. is trying to decide how best to finance a proposed $50 million capital investment. Under Plan I, the project will be financed

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1.(8) Roberts, Inc. is trying to decide how best to finance a proposed $50 million capital investment. Under Plan I, the project will be financed entirely with long-term 8% bonds. The firm currently has no debt or preferred stock. Under Plan II, common stock will be sold to net the firm $20 a share. Presently, the firm has 5 million shares are outstanding. The corporate tax rate for Roberts is 30% Prepare an EBIT-EPS analysis chart, showing the intersection of the two financing plan lines by calculating the indifference level of EBIT (& EPS) associated with the two financing plans

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