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Room and Board is considering two capital structures that have a break-even EBIT of $28,800. The all-equity capital structure would have 17,200 shares outstanding. The
Room and Board is considering two capital structures that have a break-even EBIT of $28,800. The all-equity capital structure would have 17,200 shares outstanding. The levered capital structure would have 12,700 shares of stock and $93,000 of debt. What is the interest rate on the debt? Ignore taxes.
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