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c16 q4 please help with all 4 questions Break-even EBIT (with and without taxes).Alpha Company is looking at two different capital structures, one an all-equity

c16 q4 please help with all 4 questions

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 levered firm with $4.32 million of debt financing at 12% interest. The all-equity firm will have a value of $7.2 million and 360,000 shares outstanding. The levered firm will have 144,000 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 is 15%. c.What do you notice about these two break-even EBITs for Alpha Company?

What is the break-even EBIT for Alpha Company using EPS if there are no corporate taxes?

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