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This answer will get multiple thumbs up if correct. Keep your answer till 4 decimal places DIY currently has 1,030 shares outstanding and $2,319 of
This answer will get multiple thumbs up if correct.
Keep your answer till 4 decimal places
DIY currently has 1,030 shares outstanding and $2,319 of debt. The interest rate is 4.9% and the tax rate is 33%. If it borrows additional debt of $888 to repurchase 257 shares, the interest rate on the new debt will be 1.2% higher. What is the breakeven EBIT of the two capital structures?
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