Calculate the level of EBIT that make earnings per share

Reference no: EM132211649

Question - Ski and Board are two identical firms of identical size operating in identical markets. Ski is unlevered with assets valued at $10000 and has 500 shares of stock outstanding. Board also has $10000 in assets and has $6000 in debt financed at an interest rate of 8.00% and has 200 shares of stock outstanding. Assume perfect capital markets. Calculate the level of EBIT that would make earnings per share the same for Ski and Board.

Reference no: EM132211649

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