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Corporation Pioneer Inc. is comparing two capital structures, an all - equity plan ( Plan I ) and a levered plan ( Plan II )

Corporation Pioneer Inc. is comparing two capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 315,000 shares of stock outstanding. Under Plan II, there would be 225,000 shares of stock outstanding and $4.14 million in debt outstanding. The interest rate on the debt is 10%, and there are no taxes. What is the break-even EBIT?

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