Question: please make sure answer given is one of the provided answer choices Afirm is considering two different capital structures. The first option is an all-equity

please make sure answer given is one of the provided answer choices please make sure answer given is one of the provided answer choices

Afirm is considering two different capital structures. The first option is an all-equity firm with 38,500 shares of stock. The levered option is 26,200 shares of stock plus some debt. Ignoring taxes, the break-even EBIT between these two options is $53,200. How much money is the firm considering borrowing if the interest rate is 7.4 percent? $206,075 $229,681 $240,618 $262,492 $218.197

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