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Question 8 A firm has a EBIT indifference point of $165m and an expected EBIT of $200m with a standard deviation of $50m. What is
Question 8 A firm has a EBIT indifference point of $165m and an expected EBIT of $200m with a standard deviation of $50m. What is the z-score? What is the probability that the firm will have a higher EPS if it uses equity? A z-score of -1.20 would be entered as -1.20. A probability of 37.25% should be entered as 37.25
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