What is their break-even level of operating income

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Home Depot Inc. (HD) had 1.70 billion shares of common stock outstanding in 2008, whereas Lowes Companies,. Inc. (LOW) had 1.46 billion shares outstanding. Assuming Home Depot's 2008 interest expense is $696 million Lowes' interest expense is $239 million and a 40 percent tax rate for both firms, what is their break-even level of operating income. (i.e the level of EBIT where EPS is the same for both firms)?

Reference no: EM131359222

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