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Southwest Sands currently has 24,500 shares of stock outstanding. It is considering issuing $143,000 of debt...

Southwest Sands currently has 24,500 shares of stock outstanding. It is considering issuing $143,000 of debt at an interest rate of 7.8 percent. The break-even level of EBIT between these two capital structure options is $79,000. How many shares of stock will be repurchased if the company undergoes the recapitalization? Ignore taxes.

2,717.91 shares

2,964.99 shares

3,286.19 shares

3,459.15 shares

3,747.41 shares

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. HAPPY TO HELP YOU. THUMBS UP PLEASE.

jeff jeffy answered 1 year ago
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