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A company has 7.27 million common shares outstanding and $71 million of debt with an interest rate of 5.3%. The company wants to raise another

A company has 7.27 million common shares outstanding and $71 million of debt with an interest rate of 5.3%. The company wants to raise another $56.8 million. It can do so by selling an additional 3.635 million shares of common stock (the equity plan) or by taking out a bank loan with an interest rate of 6.5% (the debt plan). The company has no preferred stock. The corporate tax rate is 22%. At what level of EBIT would the company have the same earnings per share (EPS) under either plan? Specify the answer in $ mln., to the nearest $0.01 mln., drop the $ symbol

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