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ABC Company has 18,474 shares of stock outstanding and no debt. The new CFO is considering issuing $47,602 and using the proceeds to retire 533

ABC Company has 18,474 shares of stock outstanding and no debt. The new CFO is considering issuing $47,602 and using the proceeds to retire 533 shares of stock. That is, the new shares outstanding will be 18,474 - 533. The coupon rate on the debt is 7.4%. What is the break-even level of Earnings before Interest and Taxes (EBIT) between the two capital structure options? Round off your answer to two decimal points. Do not enter $ in the answer box.

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