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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 $4.8 $4.8 million of debt

Alpha Company is looking at two different capital structures, one an all-equity firm and the other a levered firm with $4.8 $4.8 million of debt financing at 8% interest. The all-equity firm will have a value of $9.6 million and 480 shares outstanding. The levered firm will have 240,000 shares outstanding.

Find the break even EBIT for Alpha Company using EPS if there are no corporate taxes.

What is the break-even EBIT for Alpha Company using EPS if there are no corporate taxes?

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