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2 A company has 7.8 milion common shares outstanding and $51 million of debe with an interest rate of 5.6%. The company wants to raise
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A company has 7.8 milion common shares outstanding and $51 million of debe with an interest rate of 5.6%. The company wants to raise another 540.8 million. It can do so by selling an additional 3.9 million shares of common stock (the equity plan) or by taking out a bank loan with an interest rate of 6.7% (the debt plan). The coimpany has no preferred stock. The corporare tax rate is 29W. At what level of EUI would the company hwe the same earnings per share (EPS) under either plan? Specify the answer in 5 min to the nearest 50.01 min. drop the 5 symbol Step by Step Solution
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