Question: Zarco Ltd is looking at a capital restructuring plan. The plan involves increasing its existing $70 million in debt to $120 million. The interest rate

Zarco Ltd is looking at a capital restructuring plan. The plan

Zarco Ltd is looking at a capital restructuring plan. The plan involves increasing its existing $70 million in debt to $120 million. The interest rate on the debt is 8% and is not expected to change. The firm currently has 10 million shares outstanding, and the price per share is $40. IF the restructuring is expected to increase the ROE, what is the minimum level for EBIT that Zarco Ltd management must be expecting ignore taxes in your

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