Problem 13.06 – Dickson Corp. and Honeycutt Co

Essentials of Corporate Finance

Ross, Westerfield, and Jordan

10th Edition and 11th Edition

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Difficulty – Medium

Given two plans, one with more debt than the other, and the all equity capital structure, determine the EPS under each, the break-even levels of EBIT. Repeat the problem given a tax rate.

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