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What is the breakeven EBO=IT for the following scenario? Outstanding shares 40,000 price per share $100 Amount of debt being considered $1,1000,000 Interest rate on
What is the breakeven EBO=IT for the following scenario?
Outstanding shares 40,000
price per share $100
Amount of debt being considered $1,1000,000
Interest rate on debt 6%
If the expected EBIT for the firm is $200,000, should the firm take on the $1000,000 that will be used to repurchase stock?
Current Proposed
Asset
Debt
Equity
Debt ratio
Debt-equity ratio
Share price
Share outstanding
Interest Rate
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