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Business, 06.04.2021 03:40 Shybaby7334

Kolby Corp. is comparing two different capital structures. Plan I would result in 28,000 shares of stock and $88,500 in debt. Plan II would result in 22,000 shares of stock and $265,500 in debt. The interest rate on the debt is 4 percent. a. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $105,000. The all-equity plan would result in 31,000 shares of stock outstanding. What is the EPS for each of these plans

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