Company management decided to restructure its balance sheet. Current long term debt of 8 mio euros will be increased to 20 mio euros. Interest for the debt is 4%. Borrowed 12 mio euros will used to buy back shares from the market, which currently trade at 6 euros per share. Company has 3 mio shares outstanding.

What would be the lowest EBIT level in order this capital restructuring would make sense?

Calculate EPS with breakeven EBIT.