How does taxation impact a firm's EBIT-EPS indifference point?
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How does taxation impact a firm's EBIT-EPS indifference point?
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Solution Summary
This solution provides assistance determining the indifference point (computation) is shown for your study.
Solution Preview
The indifference point between the two capital structures is determined as follows:
(EBIT*-I1)*(1-T)/n1 = ...
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