Afirmhas a prtijected EBIT of $20.000 for anew project The funds needed for the project are s40,000. firm can finance the project completely with debt at a pire-tax interest cost of 10x Alternatively the firm could finance the projectwith equity by selling stock at $5 pershare it there are S00.000 shares outatanding and the firms taxrate is 40%, what is the EBIT-EPS inditference pointe O'a $500.000 Ob $40000 COc $254.000 Od $20,000 De $504,000

Answer rating: 100% (QA)

To find the EBITEPS indifference point we compare the EPS Earnings Per Share under ... View the full answer