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Brassy Products is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 20,000 shares of stock. The
Brassy Products is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 20,000 shares of stock. The debt and equity option would consist of 14,000 shares of stock plus $170,000 of debt with an interest rate of 10%. What is the indifference EBIT (EBIT*)? Ignore taxes. $17,000 $56,667 $45,333 O $28,333
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