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Northwestern Lumber Products currently has 2 5 , 0 0 0 shares of stock outstanding. Patricia, the financial manager, is considering issuing $ 1 8

Northwestern Lumber Products currently has 25,000 shares of stock outstanding. Patricia, the financial manager, is considering issuing $180,000 of debt at an interest rate of 7.9 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 $80,000? Ignore taxes.

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