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A firm is considering two different financing plans. Under plan I the interest is $8,000 and there are 1,000 shares of common stock outstanding. Under plan II the interest is $2,000. If the indifference point is $20,000 and the tax rate is 30%, how many shares of common stock are outstanding for plan II?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91773028

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