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A company has 9 3 million common shares outstanding worth $ 1 / share and $ 7 6 million of debt with an interest rate

A company has 93 million common shares outstanding worth $1/share and $76 million of debt with an interest rate of 7.0%. The company wants to raise another $40 million. It can do so by selling additional shares of common stock (the equity plan; assume the price per share will stay the same). Alternatively, it can out a bank loan with an interest rate of 7.9%(the debt plan). The company has no preferred stock. The corporate tax rate is 29%. 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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