calculate the EBIT

Jun 18th, 2015
Anonymous
Category:
Accounting
Price: $5 USD

Question description

​a company raise 100,000 by (1) selling 500 shares of common stock  at$200 each or (2)selling a new bond that will net the film $100,000 and carry an interest rate of 9%. Currently  the firm has $100,000 of debt 7%, and 1000 common stock outstanding.If the firm's tax rate is 35%, what is indifferent EBIT?

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