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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
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