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(Capl. Str.) A company has 7.79 million common shares outstanding and $41 million of debt with an interest rate of 5.5%. The company wants to

(Capl. Str.) A company has 7.79 million common shares outstanding and $41 million of debt with an interest rate of 5.5%. The company wants to raise another $32.8 million. It can do so by selling an additional 3.895 million shares of common stock (the equity plan) or by taking out a bank loan with an interest rate of 7.4% (the debt plan). The company has no preferred stock. The corporate tax rate is 25%. At what level of EBIT would the company have the same earnings per share (EPS) under either plan? Specify the answer in $ mln., to the nearest $0.01 mln., drop the $ symbol.

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