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The capital structure data of RBC factory in the beginning of year 2021 is reported below Total Capital: $5000 Million Debt @10% interest: 65%
The capital structure data of RBC factory in the beginning of year 2021 is reported below Total Capital: $5000 Million Debt @10% interest: 65% Equity 35% Price per share $100 Tax rate: 30% If the company is planning to increase debt in future without changing the total capital usage (equity capital is decreased proportionately), what should be the break even EBIT to maintain the same level of EPS in all levels of debt usage. Analyse your results and comment.
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1 Calculate the current equity capital Equity capital Total Capital Debt Equity capital 55000 Millio...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
