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5. a company has 5.16 million common shares outstanding and $60 million of debt with an intrest rate of 5.5% the company wants to raise

5. a company has 5.16 million common shares outstanding and $60 million of debt with an intrest rate of 5.5% the company wants to raise another $48 million. It can do so by selling an additional 2.58 million shares of common stock ( the equity plan) or by taking out a bank loan with an intrest rate of 7.2% (the debt plan) . the company has no preferred stock. the corporate tax rate is 20% . at what level of ebit would the company have the same earnings per share (eps) under either plan?

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