Northwestern Lumber Products currently has 25,000 shares of stock outstanding. Patricia, the financial manager, is considering issuing $180,000 of debt at an interest rate of 7.9 percent. Given this, how many shares of stock will be outstanding once the debt is issued if the break-even level of EBIT between these two capital structure options is $80,000? Ignore taxes.

22,269.27 shares

17,619.64 shares

19,185.83 shares

19,528.44 shares

20,556.25 shares