What is their break-even level of operation income

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Home Depot, Inc. had 1.70 billion shares of common stock outstanding in 2008, whereas Lowes Companies, Inc. had 1.46 billion shares outstanding. Assuming Home Depot's 2008 interest expense is $696 million, Lowes' interest expense is $239 million, and a 36 percent tax rate for both firms, what is their break-even level of operation income e. the level of EBIT where EPS is the same for both firms)?

The EBIT indifference level is?

Reference no: EM13927828

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What is their break-even level of operation income : Home Depot, Inc. had 1.70 billion shares of common stock outstanding in 2008, whereas Lowes Companies, Inc. had 1.46 billion shares outstanding. Assuming Home Depot's 2008 interest expense is $696 million, Lowes' interest expense is $239 million, and..

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