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Young Enterprises is financed entirely with 3 million shares of common stock selling for $20 a share. Capital of $4 million is needed for this
Young Enterprises is financed entirely with 3 million shares of common stock selling for $20 a share. Capital of $4 million is needed for this year's capital budget. Additional funds can be raised with new stock or with 13%10-year bonds. Young's tax rate is 40%. a. Calculate the financing plan's EBIT indifference point
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