1) Ski and Board are two identical firms of identical size operating in identical markets. Ski is unlevered with assets valued at $11000 and has 550 shares of stock outstanding. Board also has $11000 in assets and has $2000 in debt financed at an interest rate of 6.00% and has 450 shares of stock outstanding. Both Ski and Board pay tax at the rate of 30%. Calculate the level of EBIT that would make earnings per share the same for Ski and Board. $ Place your answer to the nearest dollar.

2)MassNet Corporation has 6.65 million shares outstanding and debt with interest payments of $1.53 million. What earnings before interest and tax (EBIT) must the firm have if it were to provide $4 per share to the shareholders? MassNet pays tax at the rate of 30%. Answer:$ million