Business, 26.11.2019 23:31 sihamabdalla591

Hotel cortez is an all-equity firm that has 125000 shares of stock outstanding at a market price of $44.46 per share. the firm's management has decided to issue $8 worth of debt and use the funds to repurchase shares of the outstanding stock. the interest rate on the debt will be 4.2 percent. what is the break-even ebit? ignore taxes.

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Hotel cortez is an all-equity firm that has 125000 shares of stock outstanding at a market price of...