Biomedicals is looking at expanding into making rapid PCR tests for viruses. Currently, they have 8,000 shares outstandi

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answerhappygod
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Biomedicals is looking at expanding into making rapid PCR tests for viruses. Currently, they have 8,000 shares outstandi

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Biomedicals is looking at expanding into making rapid PCR tests
for viruses. Currently, they have 8,000 shares outstanding and
$1,000,000 in debt with an interest rate of 6%. The expansion will
cost $1,500,000 million. They are looking at two options for
financing the expansion. Issue $1,500,000 in shares at a price of
$20 per share Issue debt at a rate of 6% Calculate the indifference
point in terms if EBIT for the two options?
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