Question
An all-equity firm has decided to issue $3 million worth of bonds and use the proceeds to repurchase 60,000 existing shares. There are currently 2
An all-equity firm has decided to issue $3 million worth of bonds and use the proceeds to repurchase 60,000 existing shares. There are currently 2 million shares outstanding. The annual interest rate on the new debt will be 12%. What is the break-even EBIT?
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
