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Business, 30.03.2020 21:01 eila3601

Alpha Company is looking at two different capital structures, one an all-equity firm and the other a levered firm with $4.6 million of debt financing at 14% interest. The all-equity firm will have a value of $9.2 million and 460 comma 000 shares outstanding. The levered firm will have 230 comma 000 shares outstanding. a. Find the break-even EBIT for Alpha Company using EPS if there are no corporate taxes. a. What is the break-even EBIT for Alpha Company using EPS if there are no corporate taxes?

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