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An all-equily firm currently has 2,000,000 shares outstanding. The firm is considering borrowing $3,000,000 at 5.00% per year and buying back one-hay of its outstanding

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An all-equily firm currently has 2,000,000 shares outstanding. The firm is considering borrowing $3,000,000 at 5.00% per year and buying back one-hay of its outstanding shares. Assuming a tax rale of zero, at what level of EBIT will the EPS be the same regardiess of the capital structure? Answer (round to the nearest cents): 5

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