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Business, 25.03.2020 01:53 edwmal638

Kelso Electric is an all-equity firm with 46,250 shares of stock outstanding. The company is considering the issue of $315,000 in debt at an interest rate of 9 percent and using the proceeds to repurchase stock. Under the new capital structure, there would be 28,500 shares of stock outstanding. Ignore taxes. What is the break-even EBIT between the two plans

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Kelso Electric is an all-equity firm with 46,250 shares of stock outstanding. The company is conside...

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