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Question 10 1 pts DIY currently has 1.399 shares outstanding and $2,482 of debt. The interest rate is 7.5% and the tax rate is 28%.

Question 10

1 pts

DIY currently has 1.399 shares outstanding and $2,482 of debt. The interest rate is 7.5% and the tax rate is 28%. If it borrows additional debt of $955 to repurchase 213 shares, the interest rate on the new debt will be 1.5% higher. What is the breakeven EBIT of the two capital structures?

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