Question: A firm is considering two different capital structures. The first option is an all-equity firm with 35,000 shares of stock. The levered option is 23,400

A firm is considering two different capital structures. The first option

A firm is considering two different capital structures. The first option is an all-equity firm with 35,000 shares of stock. The levered option is 23,400 shares of stock plus some debt. Ignoring taxes, the break-even EBIT between these two options is $50,400. How much money is the firm considering borrowing if the interest rate is 6.7 percent? Multiple Choice $223,690 $261,186 $249,313 $236,848 $284,930

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