Demolition Construction Services has 12,500 shares of stock outstanding and no debt. The new CFO is considering issuing $75,000 of debt and using the proceeds to retire 2,500 shares of stock. The coupon rate on the debt is 6.8 percent. What is the break-even level of earnings before interest and taxes between these two capital structure options? Please explain thoroughly step-by-step of how to find the COE = $25,500

A) $16,860

B) $18,520

C) $18,240

D) $25,500

E) $15,300