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An all-equity firm currently has 1,000,000 shares of stock outstanding and is considering borrowing $5,000,000 at 10% and buying back one-fourth of those shares. What
An all-equity firm currently has 1,000,000 shares of stock outstanding and is considering borrowing $5,000,000 at 10% and buying back one-fourth of those shares. What is the break-even EBIT assuming a tax rate of 30%? O A. $1,500,000 O B. $35,000,000 OC. $2,000,000 OD. 20,000,000
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