Choo$-$Choo Corp. is an all$-$equity firm with a market value of $$5,200,000.$ The firm is considering a debt issue of $$3,900,000$ at an $8\%$ interest rate and will use the funds to buy back shares in the firm. There are currently $200,000$ shares outstanding and it is a perfect capital market.

$14.$ If the firm keeps its current capital structure and the EBIT is expected to be $$750,000,$ what would be Choo$-$Choo$$s EPS?

A$)$ $$3\mathrm{.}75$

B$)$ $$8\mathrm{.}76$

C$)$ $$15\mathrm{.}00$

D$)$ $$2\mathrm{.}19$

E$)$ $$5\mathrm{.}00$

$15.$ What is the breakeven level of EBIT between the two capital structures?

A$)$ $$1,664,000$

B$)$ $$1,333,333$

C$)$ $$2,100,000$

D$)$ $$554,667$

E$)$ $$416,000$