Question: Find the EBIT breakeven point using the information below: Plan A: Plan B: $42 million in debt $62 million in debt 5.25% interest rate 6.75%

Find the EBIT breakeven point using the information below: 

Plan A: Plan B: $42 million in debt $62 million in debt 5.25% interest rate 6.75% interest rate $80 million in equity $60 million in equity 2 million shares of equity 1.5 million shares of equity The tax rate under both plans: 32%


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