Find the break even points for plan

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Plan 1 would result in 7,000 shares outstanding and debt of $160,000. Plan 2 would result in 5,000 shares outstanding and $240,000 of debt. The interest rate on debt is 10 percent. There is an all equity firm resulting in 11,000 shares outstanding. The corporate tax rate is 40 percent. Find the break even points for Plan 1 and the all Equity, Plan 2 and the all Equity, and Plan 1 and Plan 2.

Reference no: EM13286670

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