Question: Solve for the breakeven EBIT That would render equivalent EPS values under the current and propose capital structure Solve for the breakeven EBIT that would
Solve for the breakeven EBIT that would render equivalent EPS values under the current and proposed capital structure. Assets Debt Equity Share price $16,800,000 $19,200,000 $20,400,000 $21,600,000 Current Structure $360,000,000 $360,000,000 $0 Proposed $30 $120,000,000 $360,000,000 $240,000,000 $30 Solve for the breakeven EBIT that would render equivalent EPS values under the current and proposed capital structure. Assets Debt Equity Share price $16,800,000 $19,200,000 $20,400,000 $21,600,000 Current Structure $360,000,000 $360,000,000 $0 Proposed $30 $120,000,000 $360,000,000 $240,000,000 $30
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