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Please answer the following questions using Excel and provide formulas. Thank you, Break-even EBIT (with taxes). Beta, Gamma, and Delta Companies are similar in every
Please answer the following questions using Excel and provide formulas. Thank you,
Break-even EBIT (with taxes). Beta, Gamma, and Delta Companies are similar in every way except for their capital structures. Beta is an all-equity firm with $3,300,000 of value and 110,000 shares outstanding. Gamma is a levered firm with the same value as Beta, but $990,000 in debt at 5% and 77,000 shares outstanding. Delta is a levered firm with the same value as both Beta and Gamma with $1,980,000 in debt at 15% and 44,000 shares outstanding. What are the break-even EBITs for Beta and Gamma, Beta and Delta, and Gamma and Delta Companies if the corporate tax rate is 30% for all three companies? What is the break-even EBIT for Beta and Gamma companies? $ (Round to the nearest dollar.) What is the break-even EBIT for Beta and Delta companies? $ (Round to the nearest dollar.) What is the break-even EBIT for Gamma and Delta companies? $ (Round to the nearest dollar.)Step by Step Solution
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