Northwestern Lumber Products currently has 26,500 shares of stock outstanding. Patricia, the financial manager, is...
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Accounting
Northwestern Lumber Products currently has 26,500 shares of stock outstanding. Patricia, the financial manager, is considering issuing $189,000 of debt at an interest rate of 8.2 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 $83,000? Ignore taxes. 18,473.01 shares 21,551.84 shares 20,115.05 shares 20,474.25 shares 23,347.83 shares
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