Emst Electrical has 7,500 shares of stock outstanding and no debt. The new CFO is considering issuing $50,000 of debt and using the proceeds to retire 600 shares of stock. The coupon rate on the debt is 8.5 percent. What is the break-even level of earnings before interest and taxes between these two capital structure options? $52,500 $50,020 $48,360 $49,740 $53.125