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insane izzo inc has ebit of 1500000 and needs to raise 3000000 of additional capital. if they issue debt, the bonds will mature in 15
insane izzo inc has ebit of 1500000 and needs to raise 3000000 of additional capital. if they issue debt, the bonds will mature in 15 years and pay interest of 9% annually. the firm could instead use preferred stock with a 8.5% dividend yield. if the firm is in the 28% tax bracket and has 200,000 shares of common stock outstanding. what is the difference between each scenarios earning per share ?
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