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Southwest Sands currently has 20,500 shares of stock outstanding. It is considering issuing $119,000 of debt at an interest rate of 7.2 percent. The break-even

Southwest Sands currently has 20,500 shares of stock outstanding. It is considering issuing $119,000 of debt at an interest rate of 7.2 percent. The break-even level of EBIT between these two capital structure options is $71,000. How many shares of stock will be repurchased if the company undergoes the recapitalization? Ignore taxes

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