Question: A firm is considering two different capital structures. The first option is an all-equity firm with 36,500 shares of stock. The levered option is 24,600

A firm is considering two different capital structures. The first option is an all-equity firm with 36,500 shares of stock. The levered option is 24,600 shares of stock plus some debt. Ignoring taxes, the break-even EBIT between these two options is $51,600. How much money is the firm considering borrowing if the interest rate is 6.8 percent?

A.235027

B.259178

C.282740

D.221970

E.247397

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