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An all-equity firm has decided to issue $5 million worth of bonds and use the proceeds to repurchase 100,000 existing shares. There are currently 5

An all-equity firm has decided to issue $5 million worth of bonds and use the proceeds to repurchase 100,000 existing shares. There are currently 5 million shares outstanding. The annual interest rate on the new debt will be 10%. What is the break-even EBIT?

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