Question: Pnorty Systems is debating between a leveraged and an unieveraged capital structure. The all-equity captal structure would consist of 225,000 shares of stock. The debt
Pnorty Systems is debating between a leveraged and an unieveraged capital structure. The all-equity captal structure would consist of 225,000 shares of stock. The debt and equity option would consist of 150,000 sthares of stock plus 51,225,000 of debt with an interest rate of 8.5 percent. What is me break-even level of earnings before interest and taxes between these two options? Ignore taxes. Select one. a. 5330,750 b. 5327,994 c $359.231 d 5343.613 e. $312.375
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