Ski and board are two identical firms of identical size, Financial Management

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Ski and board are two identical firms of identical size

Ski and Board are two identical firms of identical size operating in identical markets. Ski is unlevered with assets valued at $13000 and has 650 shares of stock outstanding. Board also has $13000 in assets and has $7000 in debt financed at an interest rate of 7.00% and has 300 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.

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Financial Management: Ski and board are two identical firms of identical size

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Financial Management: Ski and board are two identical firms of identical size

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