Question: =+LG 5 ST132 EBITEPS analysis Newlin Electronics is considering additional financing of $10,000. It currently has $50,000 of 12% (annual interest) bonds and 10,000 shares

=+LG 5 ST13–2 EBIT–EPS analysis Newlin Electronics is considering additional financing of

$10,000. It currently has $50,000 of 12% (annual interest) bonds and 10,000 shares of common stock outstanding. The firm can obtain the financing through a 12%

(annual interest) bond issue or through the sale of 1,000 shares of common stock.

The firm has a 21% tax rate.

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