The MPD Company has decided in favour of a capital restructuring. Currently, MPD uses no debt financing. Following the restructuring, debt will be $1 million.

The interest rate on the debt will be 9 per cent. MPD currently has 200 000 shares outstanding, and the price per share is $20. If the restructuring is expected to increase EPS, what is the minimum level for EBIT that MPD’s management must be expecting? Ignore taxes in answering.