Question: A firm is considering two different capital structures. The first option is an all-equity firm with 32,000 shares of stock. The second option is 20,000

A firm is considering two different capital structures. The first option is an all-equity firm with 32,000 shares of stock. The second option is 20,000 shares of stock plus some debt. Ignoring taxes, the breakeven level of earnings before interest and taxes between these two options is $48,000. How much money is the firm considering borrowing if the interest rate is 8 percent? SHOW WORK OR I WILL NOT RATE

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