Break$-$even EBIT $($with and without taxes$).$ Alpha Company is looking at two different capital structures, one an all$-$equity firm and the other a levered firm with $$0\mathrm{.}92$ million of debt financing at

$12\%$ interest. The all$-$equity firm will have a value of $$4\mathrm{.}6$ million and $460,000$ shares outstanding. The levered firm will have $368,000$ shares outstanding.

a$.$ Find the break$-$even EBIT for Alpha Company using EPS if there are no corporate taxes.

b$.$ Find the break$-$even EBIT for Alpha Company using EPS if the corporate tax rate is $15\%.$

c$.$ What do you notice about these two break$-$even EBITs for Alpha Company?