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Alibaba Company is an all-equity firm that has 10,900 shares of stock outstanding at a market price of $22 per share. The firm's management has
Alibaba Company is an all-equity firm that has 10,900 shares of stock outstanding at a market price of $22 per share. The firm's management has decided to issue $112,000 worth of debt at an interest rate of 8 percent. The funds will be used to repurchase shares of the outstanding stock. What are the earnings per share at the break-even EBIT? A. $1.76 B. $19,184 C. $2.11 D. $3.58
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Optimization Methods In Finance
Authors: Gerard Cornuejols, Reha Tütüncü
1st Edition
0521861705, 978-0521861700
