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CDC is considering changing its capital structure. Currently it has 598 shares outstanding and $1,820 of debt with interest rate of 2.5%. The tax rate

CDC is considering changing its capital structure. Currently it has 598 shares outstanding and $1,820 of debt with interest rate of 2.5%. The tax rate is 23%. If it borrows new debt of $921 to repurchase 163 shares, the interest rate on the new debt will be 6.6%. What is the EPS at the breakeven EBIT?

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