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Consider the Following Financial Leverage Information for ABC Corporation

question 56

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Consider the following financial leverage information for ABC Corporation.The debt pays 10% annually in interest and the tax rate is 40%.For what EBIT will the EPS be equal for either capital structure?
Consider the following financial leverage information for ABC Corporation.The debt pays 10% annually in interest and the tax rate is 40%.For what EBIT will the EPS be equal for either capital structure?   A)  $25,000 B)  $50,000 C)  $75,000 D)  $90,000


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