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A corporation currently has 1.5 million outstanding shares with a market value of $28 per share. The corporation does not currently have any debt. It

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A corporation currently has 1.5 million outstanding shares with a market value of $28 per share. The corporation does not currently have any debt. It intends to borrow money at 8% in order to buy back 20% of its outstanding shares at the current market price. Calculate the breakeven EBIT for this new structure to make sense. $2,688,000 $4,200,000 $840,000 $3,360,000

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