in unlevered capital structure. The all-equity and equity option would consist of 40,000 7. Katlin Markets is debating between levered and an unlevered capital structure capital structure would consist of 80,000 shares of stock. The debt and equity option woun shares of stock plus $200,000 of debt with an interest rate of 5 percent. What is the break-even earnings before interest and taxes between these two options? Ignore taxes. $10,000 $20,000 C $30,000 $40,000 $50,000 A. B. D. E