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Plan A: sell 1 , 2 0 0 , 0 0 0 shares at $ 2 0 per share ( $ 2 4 million total

Plan A: sell 1,200,000 shares at $20 per
share ($24 million total)
Plan B: issue $9.6 million in 9% debt
and sell shares at $20 per share
1. Calculate break-even EBIT
2. Construct EPS-EBIT graph

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