Question
BBC is considering changing its capital structure. Currently it has 642 shares outstanding and $1,824 of debt with interest rate of 4.8%. The tax rate
BBC is considering changing its capital structure. Currently it has 642 shares outstanding and $1,824 of debt with interest rate of 4.8%. The tax rate is 23%. If it borrows new debt of $806 to repurchase 244 shares, the interest rate on the new debt will be 6.4%. What is the EPS at the breakeven EBIT?
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Transport Operations
Authors: Allen Stuart
2nd Edition
978-0470115398, 0470115394
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