Cascade Partners has total average assets of $100,000,000. The firm is currently unlevered. Cascade can...
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Cascade Partners has total average assets of $100,000,000. The firm is currently unlevered. Cascade can borrow money at an 7.0% interest rate and has a 26% tax rate. How much EBIT would the company need to generate in order to make the firm's return on equity indifferent to leverage? In other words, what level of EBIT would make ROE the same under any capital structure? $,000,000$4,400,000$2,200,000$7,000,000
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