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Alpha Company is looking at two different capital structures, one an all-equity firm and the other a levered firm with $0.92 million of debt financing

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Alpha Company is looking at two different capital structures, one an all-equity firm and the other a levered firm with $0.92 million of debt financing at 12% interest. The all-equity firm will have a value of $4.6 million and 460,000 shares outstanding. The levered firm will have 368,000 shares outstanding. a. What is the break-even EBIT for Alpha Company if there are no corporate taxes? (Round to the nearest dollar.)

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