Paradise Travels is an all-equity firm that has 10,000 shares of stock outstanding at a market price of $25 a share. Management has decided to issue $25,000 worth of debt and use the funds to repurchase shares of the outstanding stock. The interest rate on the debt will be 7.3 percent. Calculate the break even EBIT. Look at lecture material .

Formula= EBIT/Shares out= EBIT- Int Exp/( shares out after restructure)

A)$25000

B)$18,250

C)$19520

D) $10,000

E) $7300