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Northwestern Lumber Products currently has 27,000 shares of stock outstanding. Patricia, the financial manager, is considering issuing $192,000 of debt at an interest rate of
Northwestern Lumber Products currently has 27,000 shares of stock outstanding. Patricia, the financial manager, is considering issuing $192,000 of debt at an interest rate of 8.3 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 $84,000 ? Ignore taxes. Multiple Choice 20,419.20 shares 20,783.83 shares 23,700.86 shares 21,877.71 shares 18,752.33 shares
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