Northeast Lobster currently has 20,600 shares of stock outstanding. It is considering issuing $226,000 of debt at an interest rate of 8.2 percent. The break-even level of EBIT between these two capital structure options is $161,000. For this to be true, what is the current stock price? Ignore taxes. $99.85 $90.55 $95.31 $104.39 $108.93

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Northeast Lobster currently has 20,600 shares of stock outstanding. It is considering issuing $226,000 of debt at an interest rate of 8.2
percent. The break-even level of EBIT between these two capital structure options is $161,000. For this to be true, what is the current stock
price? Ignore taxes.
$99.85
$90.55
$95.31
$104.39
$108.93
Transcribed Image Text:Northeast Lobster currently has 20,600 shares of stock outstanding. It is considering issuing $226,000 of debt at an interest rate of 8.2 percent. The break-even level of EBIT between these two capital structure options is $161,000. For this to be true, what is the current stock price? Ignore taxes. $99.85 $90.55 $95.31 $104.39 $108.93
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