Identical size operating in identical markets

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Reference no: EM131893448

Ski and Board are two identical firms of identical size operating in identical markets. Ski is unlevered with assets valued at $14000 and has 700 shares of stock outstanding. Board also has $14000 in assets and has $5000 in debt financed at an interest rate of 7.50% and has 450 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: EM131893448

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