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Lydic Enterprises is considering a change from its current capital structure. The company currently has an all-equity capital structure and is considering a capital structure

Lydic Enterprises is considering a change from its current capital structure. The company currently has an all-equity capital structure and is considering a capital structure with 30 percent debt. There are currently 4,400 shares outstanding at a price per share of $60. EBIT is expected to remain constant at $43,850. The interest rate on new debt is 6 percent and there are no taxes.

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