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Room and Board is considering two capital structures that have a break-even EBIT of $30,600. The all-equity capital structure would have 17,800 shares outstanding. The
Room and Board is considering two capital structures that have a break-even EBIT of $30,600. The all-equity capital structure would have 17,800 shares outstanding. The levered capital structure would have 13,150 shares of stock and $96,000 of debt. What is the interest rate on the debt? Ignore taxes. Multiple Choice 8.33% 7.91% 9.52% 7.47% 8.72%
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