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Hotel Cortez is an all-equity firm that has 7,900 shares of stock outstanding at a market price of $24 per share. The firm's management has

Hotel Cortez is an all-equity firm that has 7,900 shares of stock outstanding at a market price of $24 per share. The firm's management has decided to issue $46,000 worth of debt and use the funds to repurchase shares of the outstanding stock. The interest rate on the debt will be 6 percent. What is the break-even EBIT?

$9588

$12119

$11186

$13109

$11653

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