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Calculate an EBIT break-even between a debt firm (DF) and an all-equity firm (EF) based on the following information: DF interest = $48,100, DF number
Calculate an EBIT break-even between a debt firm (DF) and an all-equity firm (EF) based on the following information: DF interest = $48,100, DF number common shares = 5,100, EF number of common shares = 9,300, and tax rate = 35 percent. Check your answer by calculating the EPS for both DF and EF at the break-even EBIT. The break-even EBIT is $. (Round to the nearest dollar.) Debt Firm EPS will be $. (Round to the nearest cent.) All-Equity Firm EPS will be $. (Round to the nearest cent.)
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