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Business, 30.11.2019 04:31 afosburgh20

Rise against corporation is comparing two different capital structures: an all equity plan (plan a) and a levered plan (plan b). under plan a, the company would have 210,000 shares of stock outstanding. under plan b, there would be 150,000 shares of stock outstanding and $2.28 million in debt outstanding. the interest rate on the debt is 8%, and there are no taxes. a. if ebit is s500,ooo, which plan will result in the higher eps? b. if ebit is $750,000, which plan will result in the higher eps? c. what is the break-even ebit?

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