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    raidersmooney's Avatar
    raidersmooney Posts: 2, Reputation: 1
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    #1

    May 19, 2010, 01:04 PM
    Break even level of earnings
    Juno Industrial products is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 20,000 shares of stock. The debt and equity option would consist of 14,000 shares of stock plus $170,000 of debt with an interest rate of 8 percent. What is the break-even level of earnings before interest and taxes between these two option? Ignore taxes.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    May 23, 2010, 11:21 PM

    Please see the guidelines for posting homework problems:
    https://www.askmehelpdesk.com/arts-l...-b-u-font.html
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