Northwestern Lumber Products currently has 18,000 shares of stock outstanding. Patricia, the financial manager, is considering issuing $138,000 of debt at an interest rate of 6.7 percent. Given this, how many shares of stock will be outstanding once the debt is issued if the break-even level of EBIT between these two capital structure options is $66,000? Ignore taxes. Multiple Choice О 16,768.23 shares О 14,704.45 shares 15,478.36 shares О 13,267.17 shares О 14,446.47 shares

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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MC algo 16-10 Break-even EBIT
Northwestern Lumber Products currently has 18,000 shares of stock outstanding. Patricia, the financial manager, is considering issuing $138,000 of debt
at an interest rate of 6.7 percent. Given this, how many shares of stock will be outstanding once the debt is issued if the break-even level of EBIT
between these two capital structure options is $66,000? Ignore taxes.
Multiple Choice
о
16,768.23 shares
о
14,704.45 shares
15,478.36 shares
13,267.17 shares
о
14,446.47 shares
Transcribed Image Text:MC algo 16-10 Break-even EBIT Northwestern Lumber Products currently has 18,000 shares of stock outstanding. Patricia, the financial manager, is considering issuing $138,000 of debt at an interest rate of 6.7 percent. Given this, how many shares of stock will be outstanding once the debt is issued if the break-even level of EBIT between these two capital structure options is $66,000? Ignore taxes. Multiple Choice о 16,768.23 shares о 14,704.45 shares 15,478.36 shares 13,267.17 shares о 14,446.47 shares
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