Question
Aide Ltd company has an all equity capital structure of 50,000 shares with a current share price of $5. The company wishes to raise $250,000
Aide Ltd company has an all equity capital structure of 50,000 shares with a current share price of $5. The company wishes to raise $250,000 at the current share price of $5 per share or borrow the $250,000 at a cost of 5%. What is the EBIT-EPS indifference point of these two plans? The relevant tax rate is 30%
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Principles Of Finance
Authors: Scott Besley, Eugene F. Brigham
2nd Edition
003034509X, 9780030345098
