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Alpha trade is a small public traded company list in the venture exchange with total outstanding common shares of 170,000. John, its new CEO, is
Alpha trade is a small public traded company list in the venture exchange with total outstanding common shares of 170,000. John, its new CEO, is planning to modify the companys capital structure to include debt offering. If the plan goes ahead, the company will retire 80,000 common shares and its proposed interest cost would be $100,000. What will be the indifference Earnings before interest and taxes based on such information? A. $250,000 B. $237,500 C. $225,000 D. $212,500 E. $200,000
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