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Galaxy Products is comparing two different capital structures, an all - equity plan ( Plan I ) and a levered plan ( Plan II )
Galaxy Products is comparing two different capital structures, an allequity plan Plan I and a levered plan Plan II Under Plan I, Galaxy would have shares of stock outstanding. Under Plan II there would be shares of stock outstanding and $ in debt outstanding. The interest rate on the debt is percent and there are no taxes. What is the breakeven EBIT?
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