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A corporation currently has 2 million outstanding shares with a market value of $40 per share. The corporation does not currently have any debt. It

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A corporation currently has 2 million outstanding shares with a market value of $40 per share. The corporation does not currently have any debt. It intends to borrow money at 10% interest in order to buy back 40% of its outstanding shares at the current market price. Calculate the breakeven EBIT for this new structure to make sense. $5.333.333 $8,000,000 $3,200,000 $80,000,000

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