Safe-T Corp. has no debt outstanding and a total market value of $4,500,000. The firm is considering
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considering a debt issue of $2,700,000 at an 8% interest rate and will use the funds to buy back
shares in the firm. There are currently 150,000 shares outstanding and there are no taxes in the
economy.
14. If EBIT this year is $750,000, what is the EPS of the firm in the current capital structure?
THE EPS = 5.00
15. What is the breakeven level of EBIT between the two capital structures?
A) $900,000
B) $1,666,667
C) $2,100,000
D) $600,000
E) $360,000
JUST DO QUESTION 15
Related Book For
Vector Mechanics for Engineers Statics and Dynamics
ISBN: 978-0073398242
11th edition
Authors: Ferdinand Beer, E. Russell Johnston Jr., David Mazurek, Phillip Cornwell, Brian Self
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