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Author Question: A firm has a projected EBIT of $20,000 for a new project. The funds needed for the project are ... (Read 78 times)

mia

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on: Apr 25, 2021
A firm has a projected EBIT of $20,000 for a new project. The funds needed for the project are $40,000. The firm can finance the project completely with debt at a pre-tax interest cost of 10%. Alternatively, the firm could finance the project with equity by selling stock at $5 per share. If there are 500,000 shares outstanding and the firm's tax rate is 40%, what is the EBIT-EPS indifference point?
◦ $254,000
◦ $504,000
◦ $40,000
◦ $20,000
◦ $500,000
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by mia on Apr 25, 2021

bdobbins

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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mia

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

olderstudent

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Reply 3 on: Yesterday
Excellent

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