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Northwestern Lumber Products currently has 18,500 shares of stock outstanding. Patricia, the financial manager, is considering issuing $141,000 of debt at an interest rate of
Northwestern Lumber Products currently has 18,500 shares of stock outstanding. Patricia, the financial manager, is considering issuing $141,000 of debt at an interest rate of 6.8 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 $67,000? Ignore taxes. Multiple Choice: 15,852.57 shares 14,795.73 shares 15,059.94 shares 17,173.61 shares 13,587.91 shares
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