Break-even between debt firm and all-equity firm

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Reference no: EM131560348

Calculate an EBIT break-even between a debt firm (DF) and an all-equity firm (EF) based on the following information: DF interest = $45,400, DF number common shares= 5, 300 , EF number of common shares =9,600 and tax rate =35 percent. Check your answer by calculating the EPS for both DF and EF at the break-even EBIT.

the break even EBIT is $

debt firm EPS will be $

all equity firm EPS will be $

Reference no: EM131560348

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