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

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

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter12: Capital Structure

Section: Chapter Questions

Problem 2PROB

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