Janessa Corporation is an all-equity firm with 500,000 shares outstanding. It is considering changing its capital structure to include debt. If it does, its shares will reduce to 375,000 and it will incur interest of $200,000. Given this information, calculate the break-even EBIT.

Answer rating: 100% (QA)

To calculate the breakeven EBIT for Janessa Corporation we can start with the formula for the compan... View the full answer