Question: Alpha Compaey is looking at two different capital structures, one an al equity firm and the other a severed firm with 54 milion of debt

Alpha Compaey is looking at two different capital structures, one an al equity firm and the other a severed firm with 54 milion of debt financing at 165y interest The al-equty firm will have a value of 58 milion and 400,000 shaves outstanding. The levered frm will have 200,000 shwes eutstanding. a. What is the break-even EEit for Apha Company if there are no coporate taxes? GRound to the newest dollar)

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=+a. Is it relevant to the audience?

=+c. Would it generate press attention?

=+d. Would it create talk value or buzz?