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please solve this problem witout using excel and show all steps 3. Basic Software Company has 10 million shares outstanding with price 5.75. It assumes

please solve this problem witout using excel and show all steps image text in transcribed
3. Basic Software Company has 10 million shares outstanding with price 5.75. It assumes 100 million of debt for one year. It pays 8% interest on this debt. This debt increases the cost of financial stress by 4 million. Share price decreases to 5.47. The corporate tax rate is 20%. However, interest is deductible only up to 30% of income before interest, EBIT. Calculate EBIT

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