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Simone's Sweets is an all-equity firm that has 7,900 shares of stock outstanding at a market price of $24 per share. The firm's management has
Simone's Sweets is an all-equity firm that has 7,900 shares of stock outstanding at a market price of $24 per share. The firm's management has decided to issue $72,000 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?
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