If restructuring is expected to increase earnings per share

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Reference no: EM132044661

ABC Corp has no debt in its capital structure. It currently has10 million shares of stock trading at $20 per share. The company decides to introduce $50 million in debt and the cost of debt would be 12%. If restructuring is expected to increase the earnings per share, what is the minimum level for EBIT that the management must be expecting? Ignore taxes while answering/

Reference no: EM132044661

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