Kelso Electric is debating between using a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 40,000 shares of stock. The debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. What is the break-even level of earnings before interest and taxes between these two options? The companys tax rate is 35%.

I need help with the math. I really need to see each step so i can figure out how to do it. the math is confusing me.