Kevin Corp. has the following capital structure: 30 million shares of common stock and $150 million debt with an interest rate of 10%. The firms marginal tax rate is 40%. The company is planning an expansion and has two alternative financing plans:

• Plan 1: Common equity financing. An additional 3 million shares of common stock will be sold at $10 each.
• Plan 2: Debt financing. The firm would sell $30 million of bonds with a pretax cost of 14 percent.

What is Kevins indifference point between these two alternatives?