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13-03-2024
Business

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Consider a firm with an EBIT of $862,000. The firm finances its assets with $2,620,000 debt (costing 7.6 percent and is all tax deductible) and 520,000 shares of stock selling at $6.00 per share. To:

a) $1.05
b) $1.10
c) $1.15
d) $1.20

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