Northwestern Lumber Products currently has 20,500 shares of stock outstanding. Patricia, the financial manager, is considering issuing $153,000 of debt at an interest rate of 7.2 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 $71,000? Ignore taxes.

Answer rating: 100% (QA)

Break even point NO profit or no lon Shore holder Break even bween two copital ... View the full answer