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Choo-Choo Corp. is an all-equity firm with a market value of $5,200,000. The firm is considering a debt issue of $3,900,000 at an 8% interest rate and will use the funds to buy back shares in the firm. There are currently 200,000 shares outstanding and it is a perfect capital market. 14. If the firm keeps its current capital structure and the EBIT is expected to be $750,000, what would be Choo-Choo's EPS? A) $3.75 B) $8.76 C) $15.00 D) $2.19 E) $5.00 15. What is the breakeven level of EBIT between the two capital structures? A) $1,664,000 B) $1,333,333 C) $2,100,000 D) $554,667 E) $416,000