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HomeDepot, Inc.(HD), had 1244 million shares of common stock outstanding in2016, whereas LowesCompanies, Inc.(LOW), had 929 million shares outstanding. Assuming HomeDepot's 2016 interest expense is

HomeDepot, Inc.(HD), had 1244 million shares of common stock outstanding in2016, whereas LowesCompanies, Inc.(LOW), had 929 million shares outstanding.

Assuming HomeDepot's 2016 interest expense is $919 million, Lowes' interest expense is $552 million, and a 35 percent tax rate for bothfirms, what is theirbreak-even level of operating income(i.e., the level of EBIT where EPS is the same for bothfirms)?

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