Question: A firm is considering two different capital structures. The first option is an all-equity firm with 34,000 shares of stock. The levered option is 22,600

A firm is considering two different capital structures. The first option is an all-equity firm with 34,000 shares of stock. The levered option is 22,600 shares of stock plus some debt. Ignoring taxes, the break-even EBIT between these two options is $49,600. How much money is the firm considering borrowing if the interest rate is 6.5 percent?

$243,062
$255,855
$229,559
$268,039
$292,406

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