What is the breakeven ebit of the two capital structures

Reference no: EM133558039

Firm ABC currently has debt of $3,579 that charges 5.9% interest and 667 shares outstanding. If it borrows additional debt of $1,361 at the same interest rate to buy back 81 shares, what is the breakeven EBIT of the two capital structures? Assume tax rate is 36%

Reference no: EM133558039

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