Ski and board are two identical firms of identical size, Ask an Expert

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Ski and Board are two identical firms of identical size operating in identical markets. Ski is unlevered with assets valued at $13000 and has 650 shares of stock outstanding. Board also has $13000 in assets and has $7000 in debt financed at an interest rate of 7.00% and has 300 shares of stock outstanding. Assume perfect capital markets.

Calculate the level of EBIT that would make earnings per share the same for Ski and Board.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92747392

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