Prablem $2(4$points$)$

Kelso Electric is debating between a leveraged and an unleveraged capital structure. The all$-$equity capital structure would consist of $50,000$ shares of stock. The debt and equity option would consist of $25,000$ shares of stock plus $$280,000$ of debt with an interest rate of $8$ percent.

What is the break$-$even level of earnings before interest and taxes between these two options?

What is the break$-$even level of earnings per share between these two options?