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Two capital structures have a break-even EBIT of $25,800. The all-equity capital structure would have 16,200 shares outstanding.
Two capital structures have a break-even EBIT of $25,800. The all-equity capital structure would have 16,200 shares outstanding. The levered capital structure would have 11,950 shares of stock and $88,000 of debt. What is the interest rate on the debt? Ignore taxes
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