Question
A firm is all equity with 20,000 shares outstanding, with a current price per share of $24.09. The company is considering issuing $180,000 in debt
A firm is all equity with 20,000 shares outstanding, with a current price per share of $24.09. The company is considering issuing $180,000 in debt with a 12% interest rate and buying back shares with all of the proceeds. Assume there are no taxes. What is the break-even EBIT for the firm?
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International Finance
Authors: Keith Pilbeam
4th Edition
0230362893, 978-0230362895
