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An allequity firm currently has 2,000,000 shares outstanding. The firm is considering borrowing $3,000,000 at 8.00% per year and buying back one-haif of its outstanding

An allequity firm currently has 2,000,000 shares outstanding. The firm is considering borrowing $3,000,000 at 8.00% per year and buying back one-haif of its outstanding shares. Assuming a tax rate of zero, at what level of EBIT will the EPS be the same regardless of the capital structure? Answer (round to the nearest cents) 5

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