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A company with 8,000,000 shares outstanding and debt outstanding is considering changing to an all-equity capital structure. Under the proposed all-equity capital structure, there would

A company with 8,000,000 shares outstanding and debt outstanding is considering changing to an all-equity capital structure. Under the proposed all-equity capital structure, there would be 10,000,000 shares outstanding. Assume the break-even EBIT is $300,000. If the interest rate on the debt is 6%, what is the amount of debt outstanding?

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