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Break-even EBIT (with and without taxes) Alpha Company is looking at two different capital structures, one an all-equity firm and the other a levered firm

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Break-even EBIT (with and without taxes) Alpha Company is looking at two different capital structures, one an all-equity firm and the other a levered firm with $1.92 million of debt financing at 12% interestThe all-equity firm will have a value of S96 million and 480 000 shares outstanding. The levered firm will have 384,000 shares outstanding a. Find the break-even EBIT for Alpha Company using EPS if there are no corporate taxes b. Find the break-even EBIT for Alpha Company using EPS if the corporate tax rate is 25% c. What do you notice about these two break-even EBITs for Alpha Company

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