Question: Homemade Leverage Bint, Inc., is debating whether to convert its all - equity capital structure to one that is 3 0 percent debt. Currently, there

Homemade Leverage Bint, Inc., is debating whether to convert its all-equity capital structure to one that is 30 percent debt. Currently, there are 8,500 shares outstanding, and the price per share is $51. EBIT is expected to remain at $41,000 per year forever. The interest rate on new debt is 8 percent, and there are notaxes.

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