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I asked this question earlier and I was given the wrong answer. the answer given was not a choice for me to pick from. An
I asked this question earlier and I was given the wrong answer. the answer given was not a choice for me to pick from.
An unlevered firm with a market value of $1 million has $50,000 shares outstanding. The firm restructures itself by issuing 200 new bonds with an 8% coupon. Proceeds are used to repurchase outstanding stock. Ignoring taxes, what is the break even EBIT?
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