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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? = $ 32 ,700?,
Calculate an EBIT? break-even between a debt firm? (DF) and an? all-equity firm? (EF) based on the following? information: DF interest? = $ 32 ,700?, DF number common shares? = 6,200?, EF number of common shares? = 10,900?, 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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