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Level of ebit that would make earnings per share

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PC and Mac are two identical firms operating in identical markets. PC is unlevered with assets valued at $10000 and has 400 shares of stock outstanding. Mac also has $10000 in assets and has $5,000 in debt financed at an interest rate of 10% and has 200 shares of stock outstanding. Assume perfect capital markets. Which of the following comes closest to the level of EBIT that would make earnings per share the same for PC and Mac?

Reference no: EM132473884

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