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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 =$42,000, DF number common
Calculate an EBIT break-even between a debt firm (DF) and an all-equity firm (EF) based on the following information: DF interest =$42,000, DF number common shares =6,300, EF number of common shares =9,700, 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 $ (Round to the nearest dollar.) Debt Firm EPS and All-Equity Firm EPS both will be $ (Round to the nearest cent.)
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