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Demolnion Construction Services has 12,500 shares of stock eutstanding and no debt. The now CFO is considering lssuling $75,000 of debt and using the proceeds

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Demolnion Construction Services has 12,500 shares of stock eutstanding and no debt. The now CFO is considering lssuling $75,000 of debt and using the proceeds to retire 2,500 shares of stock. The coupon rate on the debt is 6.8 percent. What is the break-even level of earnings before interest and taxes between these two capital structureoptions? Muetele Chaice 5:5300 $21000 50600 $18,520 511.240 Ready To Go is an al-equily fiem specializing in hot ready-to-eat meak. Manogement has estimated the firmis eamings before interest and taxes will be $68,000 annuplly forcver. The present cost of equity is 141 percent. Currently, the firm has no debt but is considering borrowing $450,000 at 8 percent interest. The tax rate is 24 percent. What is the value of the unlevered firm? Musple Chaice 3323017 5340,511 5314,341 5366.525 $105,200 Demolnion Construction Services has 12,500 shares of stock eutstanding and no debt. The now CFO is considering lssuling $75,000 of debt and using the proceeds to retire 2,500 shares of stock. The coupon rate on the debt is 6.8 percent. What is the break-even level of earnings before interest and taxes between these two capital structureoptions? Muetele Chaice 5:5300 $21000 50600 $18,520 511.240 Ready To Go is an al-equily fiem specializing in hot ready-to-eat meak. Manogement has estimated the firmis eamings before interest and taxes will be $68,000 annuplly forcver. The present cost of equity is 141 percent. Currently, the firm has no debt but is considering borrowing $450,000 at 8 percent interest. The tax rate is 24 percent. What is the value of the unlevered firm? Musple Chaice 3323017 5340,511 5314,341 5366.525 $105,200

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