Frankline Coin is considering two capital structures. Assume a 40% tax rate and expected EBIT of $50,000.

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Frankline Coin is considering two capital structures. Assume a 40% tax rate and expected EBIT of $50,000. Long-term debt S1:$500,000@8% with 10,000 shares common stock. S2:$350,000@7% with 20,000 shares common stock.

How do you calculate two EBIT-EPS coordinates for each "S"?

Posted Date: May 19, 2024 07:02 PM

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Frankline Coin is considering two capital structures. Assume a 40% tax rate and expected EBIT of $50,000.

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