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Business, 24.03.2020 21:12 novelty3650

A firm is considering two different capital structures. The first option is an all-equity firm with 40,500 shares of stock. The levered option is 27,800 shares of stock plus some debt. Ignoring taxes, the break-even EBIT between these two options is $54,800. How much money is the firm considering borrowing if the interest rate is 7.6 percent

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