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MC algo 16-7 Break-even EBIT Kelso Electric is an all-equity firm with 49,250 shares of stock outstanding. The company is considering the issue of $335,000

MC algo 16-7 Break-even EBIT Kelso Electric is an all-equity firm with 49,250 shares of stock outstanding. The company is considering the issue of $335,000 in debt at an interest rate of 9 percent and using the proceeds to repurchase stock. Under the new capital structure, there would be 30,500 shares of stock outstanding. Ignore taxes. What is the break-even EBIT between the two plans?

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