Substituting EBIT = $10,000, I = $2,000, PD = $2,400, and the tax rate ( T = 0.40) into Equation…


Substituting EBIT = $10,000, = $2,000, PD = $2,400, and the tax trounce (=  0.40) into Equation 12.7 yields the aftercited result:

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Equation 12.7

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