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Simone's Sweets is an all-equity firm that has 12,700 shares of stock outstanding at a market price of $18 per share. The firm's management was

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Simone's Sweets is an all-equity firm that has 12,700 shares of stock outstanding at a market price of $18 per share. The firm's management was decided to issue $136,000 worth of debt at an interest rate of 6 percent. The funds will be used to repurchase shares of the outstanding stock. What are the earnings per share at the break-even EBIT? Multiple Choice

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