Question: A firm is considering two different capital structure plans. Plan 1 is all equity and the firm has 20000 shares outstanding . Under plan 2,

A firm is considering two different capital structure plans. Plan 1 is all equity and the firm has 20000 shares outstanding . Under plan 2, the firm has $ 71750 of debt and 11,800 shares. The interest on the debt is 6% . What is the breakeven EBIT

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