The MPD Corporation has decided in favour of a capital restructuring. Currently, MPD uses no debt financing.

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The MPD Corporation has decided in favour of a capital restructuring. Currently, MPD uses no debt financing. Following the restructuring, however, debt would be $1 million. The interest rate on the debt would be 9 percent. MPD currently has 200,000 shares outstanding, and the price per share is $20. If the restructuring is expected to increase EPS, what is the minimum level for EBIT that MPD.

Posted Date: Nov 14, 2021 08:53 AM

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The MPD Corporation has decided in favour of a capital restructuring. Currently, MPD uses no debt financing.

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Under the old capital structure EPS is simply EBIT20000... View the full answer

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