Southwest Sands currently has 25,500 shares of stock outstanding. It is considering issuing $149,000 of debt...

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Finance

Southwest Sands currently has 25,500 shares of stockoutstanding. It is considering issuing $149,000 of debt at aninterest rate of 8.0 percent. The break-even level of EBIT betweenthese two capital structure options is $81,000. How many shares ofstock will be repurchased if the company undergoes therecapitalization? Ignore taxes.
Multiple Choice
3,216.51 shares
3,752.59 shares
2,948.47 shares
3,564.96 shares
4,065.31 shares

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Southwest Sands currently has 25,500 shares of stockoutstanding. It is considering issuing $149,000 of debt at aninterest rate of 8.0 percent. The break-even level of EBIT betweenthese two capital structure options is $81,000. How many shares ofstock will be repurchased if the company undergoes therecapitalization? Ignore taxes.Multiple Choice3,216.51 shares3,752.59 shares2,948.47 shares3,564.96 shares4,065.31 shares