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Southwest Sands currently has 26,000 shares of stock outstanding. It is considering issuing $152,000 of debt at an interest rate of 8.1 percent. The break-even

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Southwest Sands currently has 26,000 shares of stock outstanding. It is considering issuing $152,000 of debt at an interest rate of 8.1 percent. The break-even level of EBIT between these two capital structure options is $82,000. How many shares of stock will be repurchased if the company undergoes the recapitalization? Ignore taxes

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