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Galaxy Products is comparing two different capital structures, an all equity plan (Plan ) and a levered plan (Plan Il). Under Plan I, the company

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Galaxy Products is comparing two different capital structures, an all equity plan (Plan ) and a levered plan (Plan Il). Under Plan I, the company would have 112,000 shares of stock outstanding. Under Plan I, there would be 75,000 shares of stock outstanding and $600,000 in debt. The interest rate on the debt is 6.7 percent and there are no taxes. What is the break-even EBIT? Select one: O A. $121,686 O B.$101,111 . $91,414 D. $87,879 O E. $133,333

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