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Break - Even EBIT with taxes GTB , Inc., has a 2 1 percentage tax rate and has $ 1 0 0 million in assets,

Break-Even EBIT with taxes GTB, Inc., has a 21 percentage tax rate and has $100 million in assets, currently financed entirely with equity. Equity is worth $7 per share, and book value of equity is equal to market value of equity. Also, lets assume that the firm's expected values for EBIT depend upon which state of the economy occurs this year, with the possibilities values of EBIT and their associated probabilities shown as follows:

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