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Intro Caligula Corp. has 880,000 shares outstanding, currently trading at $55. The company is borrowing $3,100,000 to buy back some shares. The interest rate is

Intro Caligula Corp. has 880,000 shares outstanding, currently trading at $55. The company is borrowing $3,100,000 to buy back some shares. The interest rate is 12%. Assume that the buy-back does not affect the stock price. Part 1 IB Attempt 175 for 8 pts. What is the break-even EBIT if there are no taxes? 5181058 Try again Try again See solution (-9 pts.) Part 2 18 Attempt 1/5 for 10 pts. What is the break-even EBIT if the tax rate is 34%? No decimals Submit

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