lovelytilltheen
Apr 7, 2012, 08:50 PM
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Financing help needed for EBIT?
Scenario A: 2.1 million raised by selling common stock at $20 a share
Scenario B: 1.1 million raised by selling bonds with an interest rate of 10.6% (per annum) remaining 1 million would be raised by selling common stock at $20 per share. A 34% tax rate is deemed appropriate.
Find the EBIT indifference level between the two scenarios
Show me another »
Financing help needed for EBIT?
Scenario A: 2.1 million raised by selling common stock at $20 a share
Scenario B: 1.1 million raised by selling bonds with an interest rate of 10.6% (per annum) remaining 1 million would be raised by selling common stock at $20 per share. A 34% tax rate is deemed appropriate.
Find the EBIT indifference level between the two scenarios