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DIY currently has 1,056 shares outstanding and $2,191 of debt. The interest rate is 6.6% and the tax rate is 34%. If it borrows additional
DIY currently has 1,056 shares outstanding and $2,191 of debt. The interest rate is 6.6% and the tax rate is 34%. If it borrows additional debt of $943 to repurchase 254 shares, the interest rate on the new debt will be 1.8% higher. What is the breakeven EBIT of the two capital structures
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