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Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Because of this, the company's profits are driven by the amount of work
Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Because of this, the company's profits are driven by the amount of work Tom does. If he works hours each week, the company's EBIT will be $ per year, and if he works a hour week, the company's EBIT will be $ per year. The company is currently worth $ million. The company needs a cash infusion of $ million, and it can issue equity or issue debt with an interest rate of percent. Assume there are no corporate taxes.
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