Kelso Electric is an all equity firm with 54,500 share of stock outstanding. The company is considering the issue of $370,000 in debt at an interest rate of 8 percent and using the proceeds to repurchase stock. Under the new capital structure, there would be 34,000 share of stock outstanding. Ignore taxes. What is the break-even EBIT between the two plans? $85,250 $49,093 $78,693 $55,229 $67,451