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Explain how the EBIT Chart works (inputs determining the outputs-the two lines on the chart and the indifference point) in YOUR OWN WORDS.

Discuss the range of likely EBITs and relate them to the indifference EBIT - in your opinion, will future EBIT be lower than or higher than indifference EBIT?

Explain the meaning of the debt capacity calculation at row 62.

Recommend either debt or equity for the $15,000,000 financing and explain your reasoning.

Frame your answer using the FRICTO framework, p 119 in the book, citing specifics from the analysis and case.


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