Break-even ebit with taxesbeta gamma and delta companies, Ask an Expert

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Break-even EBIT (with ?taxes).

Beta, Gamma, and Delta Companies are similar in every way except for their capital structures. Beta is an all-equity firm with $3,600,000 of value and 100,000 shares outstanding. Gamma is a levered firm with the same value as? Beta, but $1,080,000 in debt at 5% and 70,000 shares outstanding. Delta is a levered firm with the same value as both Beta and Gamma with $2,160,000 in debt at 13% and 40,000 shares outstanding. What are the break-even EBITs for Beta and Gamma, Beta and Delta, and Gamma and Delta Companies if the corporate tax rate is 35% for all three companies?

What is the break-even EBIT for Beta and Gamma companies? (Round to the nearest dollar.) ___________

What is the break-even EBIT for Beta and Delta companies? (Round to the nearest dollar.) ____________

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92165151

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