An unlevered firm with a market value of $$1$ million has $50,000$ shares outstanding. The firm

restructures itself by issuing $200$ new bonds with face value $$1,000$ and an $8\%$ coupon. The firm

uses the proceeds to repurchase outstanding stock. In considering the newly levered versus

formerly unlevered firm, what is the break$-$even EBIT? Ignore taxes.

A$.$ $$25,000$

B$.$ $$50,000$

C$.$ $$75,000$

D$.$ $$80,000$

E$.$ $$95,000$