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Break-even EBIT (with and without taxes) Alpha Company is looking at two different capital structures, one an all-equity firm and the other a lovered firm

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Break-even EBIT (with and without taxes) Alpha Company is looking at two different capital structures, one an all-equity firm and the other a lovered firm with $176 million of debt financing at 16% interest. The all-equity firm will have a value of $4 4 million and 440,000 shares outstanding. The levered firm will have 264.000 shares outstanding a. Find the break-even EBIT for Alpha Company using EPS If there are no corporate taxes. b. Find the break-even EBIT for Alpha Company using EPS if the corporate tax rate in 25% C. What do you notice about these two break-even EBITs for Alpha Company? a. What is the break-even EBIT for Alpha Company using EPS If there are no corporate taxes? $10 (Round to the nearest dollar)

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