Question
Perfect Auto Tuning currently has 22,000 shares of stock outstanding.Ernie the financial manager is considering issuing $120,000 of debt at an interest rate of 6.5
Perfect Auto Tuning currently has 22,000 shares of stock outstanding.Ernie the financial manager is considering issuing $120,000 of debt at an interest rate of 6.5 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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Managerial Accounting For Dummies
Authors: Mark P Holtzman, Karen Schoenebeck
1st Edition
1118116429, 978-1118116425
