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Discount tires currently has 26,000 shares of stock outstanding. Corky, the financial manager, is considering issuing $180,000 of debt at an interest rate of 8.5%

Discount tires currently has 26,000 shares of stock outstanding. Corky, the financial manager, is considering issuing $180,000 of debt at an interest rate of 8.5% Given this, how many shares of stock will be outstanding once the debt is issued at the break-even level of EBIT between these two capital structure options is $75,000? Ignore taxes.

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