question archive Firm ABC currently has debt of $3,373 that charges 6
Firm ABC currently has debt of $3,373 that charges 6
Subject:FinancePrice: Bought3
Firm ABC currently has debt of $3,373 that charges 6.7% interest and 786 shares outstanding. If it borrows additional debt of $1,091 at the same interest rate to buy back 82 shares, what is the breakeven EBIT of the two capital structures? Assume tax rate is 36%
