Question: Room and Board is considering two capital structures that have a break-even EBIT of $31,200. The all-equity capital structure would have 18,000 shares outstanding. The

Room and Board is considering two capital structures that have a break-even EBIT of $31,200. The all-equity capital structure would have 18,000 shares outstanding. The levered capital structure would have 13,300 shares of stock and $97,000 of debt. What is the interest rate on the debt? Ignore taxes. Multiple Choice 8.80% 7.54% 7.98% O 8.40% o 9.60%

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