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A firm's tax rate is 40%. As interest is fully tax-deductible, the firm needs to earn_____more in EBIT to be able to pay $1 in

A firm's tax rate is 40%. As interest is fully tax-deductible, the firm needs to earn_____more in EBIT to be able to pay $1 in added interest.

$0.60

$1.40

$140

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