Question: Solve for the breakeven EBIT that would render equivalent EPS values under the current and proposed captial struture. Assets Current Structure $360,000,000, Proposed $360,000,000 Debt
Solve for the breakeven EBIT that would render equivalent EPS values under the current and proposed captial struture.
Assets Current Structure $360,000,000,
Proposed $360,000,000
Debt Current Structure $0,
Proposed $120,000,000
Equity Current Structure $360,000,000,
Proposed $240,000,000
Share price Current Structure $30,
Proposed $30
a) $16,800,000
b) $19,200,000
c) $20,400,000
d) $21,600,000
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