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Consider two companies in a world with no taxes that are alike except in borrowing choices, District Corp. has no debt financing and Energy Corpuses

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Consider two companies in a world with no taxes that are alike except in borrowing choices, District Corp. has no debt financing and Energy Corpuses debe financing District Corp, has 700,000 shares outstanding and pays no interest, Energy Corp. has 350,000 shares outstanding and pays $1.000.000 in interest. What's the Break Even EBIT for the two capital structures? 5500.000 $1.000.000 $700,000 $2.000.000

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