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7. Right Choice Investments LLC currently has 1,200,000 shares outstanding with a price of $2.19 per share. The company is considering raising debt capital to

7. Right Choice Investments LLC currently has 1,200,000 shares outstanding with a price of $2.19 per share. The company is considering raising debt capital to retire 20% of the shares outstanding at an annual interest rate of 9%. Is this a good idea if the companys expected EBIT is $205,478? [6 points]

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