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This is pretty urgent, can you show me how to solve it? (need to understand) 22. Lester's Meat Market is currently an all equity firm
This is pretty urgent, can you show me how to solve it? (need to understand)
22. Lester's Meat Market is currently an all equity firm that has 24,000 shares of stock operations by issuing $200.000 of debt at an interest rate of 8 percent. This new debt will be used to repurchase shares of the outstanding stock. The restructuring is expected to increase the earnings per share. What is the minimum level of earnings before interest and taxes that the firm is expecting? Ignore taxes a. $48,000 b. $52,400 c. $57,620 d. $60,200 e. none of the aboveStep by Step Solution
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