A company currently has 2M shares outstanding, carries no debt, and its assets are valued on the market at $60M. The companys financial chief proposes to raise $15M in debt at 10% annual rate for the purpose of share repurchase. Ignoring taxes, what is the breakeven EBIT?

$4M

B.

$4.5M

C.

$5M

D.

$5.5M

E.

$6M

F.

$6.5M

G.

$7M

H.

$7.5M