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Simone's Sweets is an all-equity firm that has 9,700 shares of stock outstanding at a market price of $26 per share. The firm's management has

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Simone's Sweets is an all-equity firm that has 9,700 shares of stock outstanding at a market price of $26 per share. The firm's management has decided to issue $96,000 worth of debt at an interest rate of 8 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 $5.46 $2.50 $3.36 $3.54 $2.08

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