Question: Question 3 Chick 'N Fish is considering two different capital structures. The first option is an all-equity firm with 22,500 shares of stock. The second

Question 3 Chick 'N Fish is considering two different capital structures. The first option is an all-equity firm with 22,500 shares of stock. The second option consists of 18,750 shares of stock plus $120,000 of debt at an interest rate of 8.8 percent Ignore taxes. What is the break-even level of earnings before interest and taxes (EBIT) between these two options? For the toolbar, press ALT+F10 (PC) or ALTFN+F10 (Mac). BIU Paragraph Arial 10pt . I Q 6 2 = = x? X, 111 ... x - E 55 +] - Te TT 2 :) Break even EBIT: EBIT/22,500=(EBIT 6 WORDS POWERED BY TINY P

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