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Wesley, Inc. is a levered firm with $60,000 of total assets and $20,000 of debt in its balance sheet. The firm faces EBIT scenarios of
Wesley, Inc. is a levered firm with $60,000 of total assets and $20,000 of debt in its balance sheet. The firm faces EBIT scenarios of recession, and boom. The corporate tax rate is 32%. \{Note: EBIT = Earnings before Interest and Tax, NIBT = Net Income Before Tax, NI = Net Income, and EPS = Earnings Per Share What amount comes closest to Wesley's EBIT in the BOOM scenario? $7,000$7,500$8,000$8,500$9,000
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