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A company has 7.78 million common shares outstanding and $45 million of debt with an interest rate of 4.9%. The company wants to raise another

A company has 7.78 million common shares outstanding and $45 million of debt with an interest rate of 4.9%. The company wants to raise another $36 million. It can do so by selling an additional 3.89 million shares of common stock (the equity plan) or by taking out a bank loan with an interest rate of 7.6% (the debt plan). The company has no preferred stock. The corporate tax rate is 28%. 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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