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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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