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A company is an all-equity firm that has 6,700 shares of stock outstanding at a ...
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A company is an all-equity firm that has 6,700 shares of stock outstanding at a market price of $18 per share. The firm's management has decided to issue $38,000 worth of debt and use the funds to repurchase shares of the outstanding stock. The interest rate on the debt will be 6 percent. What is the break-even EBIT?
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