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Haskell Corp. is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would

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Haskell Corp. is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 150,000 shares of stock outstanding Under Plan II, there would be 6 120,000 shares of stock outstanding and $2,000,000 in debt outstanding. The interest rate on the debt is 6 percent and the corporate tax rate is 30%. What is the break-even EBIT? a. $360,000 b. $420,000 c. $480,000 d. $600,000 e. $720,000

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