question archive Firm ABC currently has debt of $3,463 that charges 5
Firm ABC currently has debt of $3,463 that charges 5
Subject:FinancePrice: Bought3
Firm ABC currently has debt of $3,463 that charges 5.4% interest and 625 shares outstanding. If it borrows additional debt of $1,806 at the same interest rate to buy back 122 shares, what is the breakeven EBIT of the two capital structures? Assume tax rate is 28%
