Make earnings per share the same for ski and board

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Reference no: EM131905492

Ski and Board are two identical firms of identical size operating in identical markets. Ski is unlevered with assets valued at $15000 and has 750 shares of stock outstanding. Board also has $15000 in assets and has $6000 in debt financed at an interest rate of 6.00% and has 450 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. $ ________

Reference no: EM131905492

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