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c16 q4 please help with parts 1-3 Break-even EBIT (with and without taxes). Alpha Company is looking at two different capital structures, one an all-equity

c16 q4 please help with parts 1-3

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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 $0.96 million of debt financing at 9% interest. The all-equity firm will have a value of $4.8 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 40%. c. What do you notice about these two break-even EBITs for Alpha Company? a. What is the break-even EBIT for Alpha Company using EPS if there are no corporate taxes? \$ (Round to the nearest dollar.)

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