I had this as a quiz question and got it wrong, I'm just studying for a test that's on Monday, so if you could show the steps of how to answer this correctly, I'd greatly appreciate it!

The KoSol Co. can raise $200,000 by (1) selling 1.000 shares of common stock at $200 each or (2) selling new bonds that will net the firm $200.000 and carry an interest rate of 9 percent. Currently, the firm has $200,000 of debt at 7% and 2,000 common stock outstanding. If the firm's tax rate is 25 percent, what is the indifferent EBIT (EBIT T* - (14000 + 18.000) x (1.25) GEIT* - 140.coox (1.26