In: Finance
Ski and Board are two identical firms of identical size operating in identical markets. Ski is unlevered with assets valued at $14000 and has 700 shares of stock outstanding. Board also has $14000 in assets and has $7000 in debt financed at an interest rate of 9.50% and has 350 shares of stock outstanding. Assume perfect capital markets.
Calculate the level of EBIT that would make earnings per share the same for Ski and Board.
$
Place your answer to the nearest dollar. If applicable, your answer should NOT include a comma