Question
XYZ, Inc. currently has 20,000 shares of stock outstanding at a market value of $40 a share. The firm is currently 100% financed with equity.
XYZ, Inc. currently has 20,000 shares of stock outstanding at a market value of $40 a share. The firm is currently 100% financed with equity. XYZ is considering a restructuring which will include issuing $100,000 of bonds at par value with a coupon rate of 6%. What is the break-even EBIT?
A)12,000
B) 24,000
C) 36,000
D)48,000
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Banking Secrecy And Global Finance
Authors: Donato Masciandaro, Olga Balakina
1st Edition
1137400099, 978-1137400093
