Question: Alpha Company is looking at two different capital structures , one an all - equity firm and the other a lovered firm with $ 1.52
Alpha Company is looking at two different capital structures , one an all - equity firm and the other a lovered firm with $ 1.52 million of debt financing at 8 % interest . The all - equity firm will have a value of $ 7.6 million and 380,0 The lovorod firm will have 304,000 shares outstanding . a . Find the break - even EBIT for Alpha Company using EPS if there are no corporate taxes . a . What is the break - even EBIT for Alpha Company using EPS if there are no corporate taxes ? ( Round to the nearest dollar . )
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