Question: Galaxy Products is comparing two different capital structures, an all equity plan (Plan ) and a levered plan (Plan Il). Under Plan I, the company

Galaxy Products is comparing two different capital structures, an all equity

Galaxy Products is comparing two different capital structures, an all equity plan (Plan ) and a levered plan (Plan Il). Under Plan I, the company would have 112,000 shares of stock outstanding. Under Plan I, there would be 75,000 shares of stock outstanding and $600,000 in debt. The interest rate on the debt is 6.7 percent and there are no taxes. What is the break-even EBIT? Select one: O A. $121,686 O B.$101,111 . $91,414 D. $87,879 O E. $133,333

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