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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 $36,300,
Calculate an EBIT break-even between a debt firm (DF) and an all-equity firm (EF) based on the following information: = = DF interest $36,300, DF number common shares 5,800, EF number of common shares = 10,700, 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 $ 23595. (Round to the nearest dollar.) Debt Firm EPS and All-Equity Firm EPS both will be $.99. (Round to the nearest cent.) rect: 0
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