Lexington is looking to invest in the latest and greatest energy-generating technology. Due to decreased demand, the company needs to make this expansion but does not have the necessary cash flow to do so. The firm's current capital structure consists of common stock ($500 million, 25 million shares) and debt ($675 million, 4% coupon rate). The firm is considering the following plans: Plan A: Debt Financing: Issue $124 million of 9% long-term debt. Plan B: Equity Financing: Sell an additional 7.75 million shares of common stock at $16 per share. Assuming a 21% corporate tax rate, at what level of operating income (EBIT) will the firm be indifferent between the two plans? $74.16 million $137.04 million $39.94 million $27 million