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    How many shares of stock remain once debt is issued

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    Northwestern Lumber Products currently has 15,000 shares of stock outstanding. Patricia, the financial manager, is considering issuing $120,000 of debt at an interest rate of 6.75 percent. Given this, how many shares of stock will be outstanding once the debt is issued if the break-even level of EBIT between these two capital structure options is $60,000? Ignore taxes.

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    https://brainmass.com/business/accounting-for-corporations/how-many-shares-stock-remain-once-debt-issued-336796

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    Analysis
    Issuing the $120,000 of debt at an interest rate of 6.75% doesn't affect Northwestern Lumber Products' outstanding common ...

    Solution Summary

    The expert determines how many shares of stock remain once debt is issued.

    $2.19