Nelson Quarries Limited must raise $30 million in order to finance the coming year's capital expansion plans. The question the financial manager is pondering is whether earnings per share will be maximized through debt or equity financing. Nelson Quarries currently has $40 million of 6% coupon bonds outstanding. These bonds have 20 years left to maturity. The firm has 1, 500,000 common shares outstanding and they arc currently trading on the stock market for $42 per share. If Nelson Quarries raises the $30 million in the form of debt today, it will have to pay a coupon rate of 5% at current interest rates. If it sells new equity to finance the $30 million, it will net $40 per new share sold into the public markets. The firm faces a corporate tax rate of 35%. The firm has developed some expectations with regard to earnings before interest and taxes (EBIT) for the coming year: a. Calculate the indifference point between the two financing alternatives Nelson Quarries is considering