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in order to expand into africa, adidas needs to raise $1 billion. Determine whether adidas should use all debt, all stock, or a 5050 combination
in order to expand into africa, adidas needs to raise $1 billion. Determine whether adidas should use all debt, all stock, or a 5050 combination of debt and stock to finance this market-development strategy. assume a 20 percent tax rate, 5 percent interest rate, adidas stock price of $30 per share, and an annual dividend of $0.50 per share of common stock. the eBit range for 2011 is between $1.0 billion and $2 billion. a total of 500 million shares of common stock are outstanding. Develop an ePS/eBit chart to reflect your analysis.
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