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Firm ABC currently has debt of $4000 that charges 6% interest and 700 shares outstanding. If it borrows additional debt of $1,100 at the same
Firm ABC currently has debt of $4000 that charges 6% interest and 700 shares outstanding. If it borrows additional debt of $1,100 at the same interest rate to buy back 150 shares, what is the breakeven EBIT of the two capital structures? Assume tax rate is 30%
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