What is their break-even level of operating income

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Reference no: EM131531517

Home Depot, Inc. (HD) had 1.70 billion shares of common stock outstanding in 2008, whereas Lowes Companies, inc. (LOW) had 1.46 billion shares outstanding. Assuming Homo Depot's 2008 interest expense is $696 million, Lowes' interest expense is $239 million, and a 38 percent tax rate for both firms, what is their break-even level of operating income (i.e., the level of EBIT where EPS is the same for both firms)? The EBIT indifference level is $. (Round to the nearest dollar.)

Reference no: EM131531517

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