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Kelso Electric is an all-equity firm with 47,000 shares of stock outstanding. The company is considering the issue of $320,000 in debt at an interest

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Kelso Electric is an all-equity firm with 47,000 shares of stock outstanding. The company is considering the issue of $320,000 in debt at an interest rate of 6 percent and using the proceeds to repurchase stock. Under the new capital structure, there would be 29,000 shares of stock outstanding. Ignore taxes. What is the break-even EBIT between the two plans? Multiple Choice $30,933 $50,133 $34,800 $42.971 554311

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