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A company is planning to change its capital structure by issuing equity and using the proceeds to reduce its debt levels. The company should proceed
A company is planning to change its capital structure by issuing equity and using the proceeds to reduce its debt levels. The company should proceed with the equity issue if:
a. it expects net profit after tax to decrease.
b. it expects EBIT to be higher than the breakeven EBIT.
c. it expects EBIT to be less than the breakeven EBIT.
d. it expects the number of shares to decrease.
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