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get the correct answer and calculaton Cross Town Cookies is an all-equity firm with a total market value of $770,000. The firm has 46,000 shares
get the correct answer and calculaton
Cross Town Cookies is an all-equity firm with a total market value of $770,000. The firm has 46,000 shares of stock outstanding. Management is considering issuing $191,000 of debt at an interest rate of 7 percent and using the proceeds to repurchase shares. Before the debt issue, EBIT will be $69,800. What is the EBIT if the debt is issued? Ignore taxes. O $1.89 O $1.37 O $1.63 $99Step by Step Solution
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