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Business, 06.11.2020 16:40 esta54

Cross Town Cookies is an all-equity firm with a total market value of $805,000. The firm has 46,000 shares of stock outstanding. Management is considering issuing $212,000 of debt at an interest rate of 8 percent and using the proceeds to repurchase shares. Before the debt issue, EBIT will be $74,000. What is the EPS if the debt is issued

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Cross Town Cookies is an all-equity firm with a total market value of $805,000. The firm has 46,000...
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