Hotel Cortez is an all-equity firm that has 11,800 shares of stock outstanding at a...
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Hotel Cortez is an all-equity firm that has 11,800 shares of stock outstanding at a market price of $41 per share. The firm's management has decided to issue $72,000 worth of debt and use the funds to repurchase shares of the outstanding stock. The interest rate on the debt will be 7 percent. What is the break-even EBIT?
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