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

Please help solve!!! Break-even EBIT (with and without taxes). Alpha Company is

Please help solve!!!

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 $3.36 million of debt financing at 9% interest. The all-equity firm will have a value of $8.4 million and 420,000 shares outstanding. The levered firm will have 252,000 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 15%. c. What do you notice about these two break-even EBITs for Alpha Company? a. What is the break-even EBIT for Alpha Company using EPS if there are no corporate taxes? $ (Round to the nearest dollar.)

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