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A company has 9 3 million common shares outstanding worth $ 1 / share and $ 7 6 million of debt with an interest rate
A company has million common shares outstanding worth $share and $ million of debt with an interest rate of The company wants to raise another $ million. It can do so by selling additional shares of common stock the equity plan; assume the price per share will stay the same Alternatively, it can out a bank loan with an interest rate of the debt plan The company has no preferred stock. The corporate tax rate is At what level of EBIT would the company have the same earnings per share EPS under either plan? Specify the answer in $ mln to the nearest $ mln drop the $ symbol.
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