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Kelso electric is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 60,000 shares of stock. The

Kelso electric is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 60,000 shares of stock. The debt and equity option would consist of 45,000 shares of stock plus 250,000 of debt with an interest rate of 7.25%. What is the break-even level of earnings before interest and taxes between these two options?

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