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salonijainnn salonijainnn
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7 months ago
Determine the EPS indifference point for Poutine Company for the following two financing options:
1.A debt/equity ratio of .60, pre-tax cost of debt is 8%, annual interest payments
are $2,000, and the company has 1,000 shares outstanding.
2.An all equity financing plan with a total of 1,500 shares outstanding.

The tax rate is 40 % for both scenarios. The EPS indifference point is

▸ $2,000.

▸ $4,000.

▸ $6,000.

▸ $10,000.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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krissyc39krissyc39
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7 months ago
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salonijainnn Author
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7 months ago
Good timing, thanks!
Katey_maree
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Yesterday
Just got PERFECT on my quiz
Mcb
wrote...

2 hours ago
Smart ... Thanks!
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