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QUESTION
If EBIT is expected to be $1,000 per year in perpetuity, what is the price-to-earnings ratio under the proposed capital structure?
If EBIT is expected to be $1,000 per year in perpetuity, what is the price-to-earnings ratio under the proposed capital structure? The Interest rate of 8% and tax rate of 40% with $3000 of debt. How can you find the P/E ratios please help.
