Question: please make sure answer given is one of the provided answer choices Afirm is considering two different capital structures. The first option is an all-equity
Afirm is considering two different capital structures. The first option is an all-equity firm with 38,500 shares of stock. The levered option is 26,200 shares of stock plus some debt. Ignoring taxes, the break-even EBIT between these two options is $53,200. How much money is the firm considering borrowing if the interest rate is 7.4 percent? $206,075 $229,681 $240,618 $262,492 $218.197
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