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35. A company has $100,000 in assets, 1000 shares outstanding and no debt. If EBIT is $20,000, the interest rate on debt is 10% and
35. A company has $100,000 in assets, 1000 shares outstanding and no debt. If EBIT is $20,000, the interest rate on debt is 10% and its tax rate is 40%, what is its EPS? If the firm decided to refinance with 50% debt and 50% equity, what would its EPS be? What is the breakeven EBIT
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
