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Business, 07.03.2020 04:36 bshreve

Katlin Markets is debating between a levered and an unlevered capital structure. The all-equity capital structure would consist of 75,000 shares of stock. The debt and equity option would consist of 40,000 shares of stock plus $320,000 of debt with an interest rate of 6.25 percent. What is the break-even level of earnings before interest and taxes between these two options? Ignore taxes. a.$46,333.33b.$44,140.71c.$42,208.1 5d.$49,666.67e.$42,857.14

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