Question: Room and Board is considering two capital structures that have a break-even EBIT of $24,600. The all-equity capital structure would have 15,800 shares outstanding. The

Room and Board is considering two capital structures that have a break-even EBIT of $24,600. The all-equity capital structure would have 15,800 shares outstanding. The levered capital structure would have 11,650 shares of stock and $86,000 of debt. What is the interest rate on the debt? Ignore taxes.

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