Question: Alpha Company is looking at two different capital structures, one an all-equity firm and the other a lovered firm with $2.28 million of debt financing

Alpha Company is looking at two different capital structures, one an all-equity firm and the other a lovered firm with $2.28 million of debt financing at 6% interest The all-equity firm will have a value of $76 million and 380,000 shares outstanding The levered firm will have 266,000 shares outstanding GLEDE a. What is the break-even EBIT for Alpha Company if there are no corporate taxes? (Round to the nearest dollar)

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