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Ski and Board are two identical firms of identical size operating in identical markets. Ski is...

Ski and Board are two identical firms of identical size operating in identical markets. Ski is unlevered with assets valued at $14000 and has 700 shares of stock outstanding. Board also has $14000 in assets and has $2000 in debt financed at an interest rate of 6.00% and has 600 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. $ Place your answer to the nearest dollar. If applicable, your answer should NOT include a comma

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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

INTEREST FOR BAORD COMPANY = 2000 X 6% = 120

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