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(Using EBIT-EPSbreak-even analysis) HomeDepot, Inc.(HD), had 1244 million shares of common stock outstanding in2016, whereas LowesCompanies, Inc.(LOW), had 929 million shares outstanding. Assuming HomeDepot's 2016
(Using EBIT-EPSbreak-even analysis) HomeDepot, Inc.(HD), had 1244 million shares of common stock outstanding in2016, whereas LowesCompanies, Inc.(LOW), had 929 million shares outstanding. Assuming HomeDepot's 2016 interest expense is $919 million, Lowes' interest expense is $552 million, and a 35 percent tax rate for bothfirms, what is theirbreak-even level of operating income(i.e., the level of EBIT where EPS is the same for bothfirms)?
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