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omeli [17]
4 years ago
15

Galaxy Products is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under P

lan I, Galaxy would have 230000 shares of stock outstanding. Under Plan II, there would be 224478 shares of stock outstanding and $210000 in debt outstanding. The interest rate on the debt is 8.2 percent and there are no taxes. What is the breakeven EBIT?
Business
1 answer:
ankoles [38]4 years ago
6 0

Answer:

break even EBIT is $717,240.13

Explanation:

given data

stock outstanding = 230000 shares

stock outstanding = 224478 shares

debt outstanding = $210000

interest rate = 8.2 percent

to find out

What is the break even EBIT

solution

we get break even EBIT is here express as

\frac{EBIT}{230000} = \frac{EBIT-210000*0.082}{224478}

EBIT × 224478 = 230000  × ( EBIT - 17220 )

solve it we get

EBIT  = $717,240.13

so break even EBIT is $717,240.13

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B. Leontief ignored land abundance in the United States

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Bumek [7]

Answer:

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Since the people and equipment were not optimally positioned, the process map that would best help the team address this issue is the spaghetti map. It's vital as it helps in identification of workflow redundancies.

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Oksana_A [137]

Answer:

<u>Anna can deduct up to US$ 10,000, so she can deduct as an itemized deduction the payment of US$ 2,500 on real estate taxes she made.</u>

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