Question: Room and Board is considering two capital structures that have a break-even EBIT of $27,600 The all-equity copital structure would have 16,800 shares outstanding. The

Room and Board is considering two capital structures that have a

Room and Board is considering two capital structures that have a break-even EBIT of $27,600 The all-equity copital structure would have 16,800 shares outstanding. The levered capital structure would have 12,400 shares of stock and $91,000 of debt. What is the interest rate on the debt? lignore taxes. o 832% ? 9.08% 0 7.13% 794% ? 7.55%

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