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Maersk is a publicly traded shipping company with 60 million shares outstanding. Its current share price is $20 per share. The company also has $500
Maersk is a publicly traded shipping company with 60 million shares outstanding. Its current share price is $20 per share. The company also has $500 million debt with 3% interest rate charged by the lender. The management is considering two financing alternatives to raise $100 million from capital markets for the development of a new shipping terminal in Rotterdam. Under Option A, they will sell new shares at the current stock price; under Option B, they will borrow at the 5%. The company's marginal tax rate is 42% and their WACC is 15%. At what EBIT will Maersk b\% indifferent between Option A and B ? Round your answer to the nearest dollar amount in millions, i.e., if your answer is \$13.78 million, write 14 . Also, do not include symbols (%,$) in your
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