Question: Please help!! EBITs are so hard): Break-even EBIT (with and without taxes). Alpha Company is looking at two different capital structures, one an all-equity firm

Please help!! EBITs are so hard):

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 $5.76 million of debt financing at 8% interest. The all-equity firm will have a value of $9.6 million and 480,000 shares outstanding. The levered firm will have 192,000 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 40%. c. What do you notice about these two break-even EBITs for Alpha Company

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