Question: Middle Eastern Midway Products currently has 2 5 , 5 0 0 shares of stock outstanding. David, the financial manager, is considering issuing $ 1

Middle Eastern Midway Products currently has 25,500 shares of stock outstanding. David, the financial manager, is considering issuing $183,000 of debt at an interest rate of 8.0 percent. Given this, how many shares of stock will be outstanding once the debt is issued if the break-even level of EBIT between these two capital structure options is $81,000? Ignore taxes.

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