Info
Warning
Danger
/ Homework Answers / Finance / Galaxy products comparing two different capital structures, an all-equity plan

Question : Galaxy products comparing two different capital structures, an all-equity plan

Galaxy products is comparing two different capital structures, an all-equity plan (plan 1) and a leveraged plan (plan 2). Under plan 1. Galaxy would have 178,500 shares of stock outstanding. Under plan 2, there would be 71,400 shares of stock outstanding and $1.79 million in debt outstanding. The interest rate on the debt is 10 percent and there are no taxes. What is the break even EBIT?

Solution
5 (1 Ratings )

Solved
Finance 1 Year Ago 20 Views
This Question has Been Answered!
Premium Content -