Break-even EBIT (with and without taxes). Alpha Company is looking at two different capital structures, one an all-equit

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Break Even Ebit With And Without Taxes Alpha Company Is Looking At Two Different Capital Structures One An All Equit 1 (15.7 KiB) Viewed 9 times

Break-even EBIT (with and without taxes). Alpha Company is looking at two different capital structures, one an all-equity firm and the other a levered firm with $4.8 million of debt financing at 6% interest. The all-equity firm will have a value of $8 million and 400,000 shares outstanding. The levered firm will have 160,000 shares outstanding. a. Find the break-even EBIT for Alpha Company using EPS if there are no corporate taxes. b. Find the break-even EBIT for Alpha Company using EPS if the corporate tax rate is 30%. c. What do you notice about these two break-even EBITS for Alpha Company? CETTE a. What is the break-even EBIT for Alpha Company using EPS if there are no corporate taxes? (Round to the nearest dollar)