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Question 23 1 pts Lexington has a capital structure consisting of common stock ($200 million, 10 million shares) and debt ($200 million, 7% coupon rate).

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Question 23 1 pts Lexington has a capital structure consisting of common stock ($200 million, 10 million shares) and debt ($200 million, 7% coupon rate). The company is planning a major expansion of $30 million and is considering two plans Plan A: Issue 2 million shares of common stock at $15 a share Plan B: Issue 1 million shares of common stock at $15 a share, and the rest financed by debt with a 5% coupon rate. At what level of EBIT is the firm indifferent to each plan? Assume 21% marginal tax rate. $33 million $28 million $23 million $49 million $39 million Dreation Next

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