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Soutwest Sands currently has 1 8 , 0 0 0 shares of stock outstanding. It is considering issuing $ 1 0 4 , 0 0

Soutwest Sands currently has

18, 000

shares of stock outstanding. It is considering issuing $

104, 000

of a debt at an interest rate of

6.7

percent. The break even level of EBIT between these two capital structure options is $

66, 000 .

How many shares of stock will be repurchased if the company undergoes the recapitalization? Ignore taxes

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