Question: Room and Board is considering two capital structures that have a break-even EBIT of $22,800. The all-equity capital structure would have 15,200 shares outstanding. The

Room and Board is considering two capital structures that have a break-even EBIT of $22,800. The all-equity capital structure would have 15,200 shares outstanding. The levered capital structure would have 11,200 shares of stock and $83,000 of debt. What is the interest rate on the debt?

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