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XYZ Co. has to raise 50.000.000 dollars for a project. They can raise it through bonds or new stock issues. Cost of debt is %40.

XYZ Co. has to raise 50.000.000 dollars for a project. They can raise it through bonds or new stock issues. Cost of debt is %40. For raising through stocks: 1000 dollars par value 50000 stocks. Current stock number is 50000 too. Tax rate %46. At which EBIT level can company fund this project with bonds or stocks exclusively. Thank you.

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