Question
BBC is considering changing its capital structure. Currently it has 648 shares outstanding and $1,831 of debt with interest rate of 2.1%. The tax rate
BBC is considering changing its capital structure. Currently it has 648 shares outstanding and $1,831 of debt with interest rate of 2.1%. The tax rate is 22%. If it borrows new debt of $775 to repurchase 167 shares, the interest rate on the new debt will be 7%. What is the EPS at the breakeven EBIT? ans till 4 places
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Essentials Of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
9th International Edition
1259254801, 9781259254802
