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

Galaxy Products is comparing two different capital structures, an all-equity plan
(Plan I) and a levered plan (Plan II). Under Plan I, the

Galaxy Products is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 112,000 shares of stock outstanding. Under Plan II, 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? $87,879 O $121,686 O $101,111 $133,333 O O $91,414

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