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ABC Company has 14,210 shares of stock outstanding and no debt. The new CFO is considering issuing $53,810 and using the proceeds to retire 527

ABC Company has 14,210 shares of stock outstanding and no debt. The new CFO is considering issuing $53,810 and using the proceeds to retire 527 shares of stock. That is, the new shares outstanding will be 14,210 - 527. The coupon rate on the debt is 4%. What is the break-even level of Earnings before Interest and Taxes (EBIT) between the two capital structure options? Round to three decimals

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