1. 16.1 EBIT and EPS Suppose the BDJ Company has decided in favour of a capital restructuring that involves increasing its existing $80 million in debt to $125 million. The interest rate on the debt is 9 per cent and is not expected to change. The firm currently has 10 million shares outstanding, and the price per share is $45. If the restructuring is expected to increase the ROE, what is the minimum level for EBIT that BDJ’s management must be expecting? Ignore taxes in your answer.