Question
Northwestern Lumber Products currently has 18,000 shares of stock outstanding. Patricia, the financial manager, is considering issuing $138,000 of debt at an interest rate of
Northwestern Lumber Products currently has 18,000 shares of stock outstanding. Patricia, the financial manager, is considering issuing $138,000 of debt at an interest rate of 6.7 percent. Given this, how many shares of stock will be outstanding once the debt is issued if the break-even level of EBIT between these two capital structure options is $66,000? Ignore taxes.
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The Handbook Of Loan Syndications And Trading
Authors: Marsh, Lee Shaiman, Bridget Marsh
2nd Edition
1264258526, 978-1264258529
