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Kelso Electric is an all-equity firm with 45,500 shares of stock outstanding. The company is considering the issue of $310,000 in debt at an Interest

Kelso Electric is an all-equity firm with 45,500 shares of stock outstanding. The company is considering the issue of $310,000 in debt at an Interest rate of 8 percent and using the proceeds to repurchase stock. Under the new capital structure, there wouid be 28,000 shares of stock outstanding. ignore taxes. What is the break-even EBIT between the two plans? Mutiple Cnoice $64,480 $69,853 $44,640 $55.269 $39,680

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