Question: Priority Systems is debating between a leveraged and an unleveraged capital structure. The all-equity capital structure would consist of 225,000 shares of stock. The debt

Priority Systems is debating between a leveraged and an unleveraged capital structure. The all-equity capital structure would consist of 225,000 shares of stock. The debt and equity option would consist of 150,000 shares of stock plus $1,225,000 of debt with an interest rate of 9 percent. What is the break-even level of earnings before interest and taxes between these two options? Ignore taxes. Select one: O a. $380,363 O b. $312,375 O c. $330,750 O d. $347,288 O e. $363,825

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