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Not yet answered Marked out of 1.00 P Flag question Allegra Inc. has one million shares outstanding. The company is considering the issue of debt of $10 million. The interest rate on this new debt issue will be 8%, and the number of shares after the debt issue will be reduced to 500,000. Given a corporate tax rate of 35%, what is the EBIT that will cause the firm's earnings per share to be indifferent between issuing and not issuing debt? Select one: o a. $1,200,000 O b. $1,600,000 C. $1,800,000 O d. $2,400,000 o e. $2,600,000