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Hotel Cortez is an all-equity firm that has 10,000 shares of stock outstanding at a market price of $33 per share. The firmsTauntons is an all-equity firm that has 154,000 shares of stock outstanding. The CFO is considering borrowing $269,000 at 7A firm has a cost of debt of 5.6 percent and a cost of equity of 14.5 percent. The debt-equity ratio is 1.14. There are no ta

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Number of shares after repurchase 8,182 =10000-60000/33 Breakeven EBIT: EBIT 10,000 (EBIT-$5400) 8182 EBITX8182 = 10000x EBIT

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