An all-equity firm has decided to issue $3 million worth of bonds and use the proceeds to

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An all-equity firm has decided to issue $3 million worth of bonds and use the proceeds to repurchase 60,000 existing shares. There are currently 2 million shares outstanding. The annual interest rate on the new debt will be 12%. What is the break-even EBIT?

Posted Date: May 17, 2024 05:03 PM

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An all-equity firm has decided to issue $3 million worth of bonds and use the proceeds to

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