Please help with all 3 parts

c-16 q4

Break-even EBIT (with and without taxes). Alpha Company is looking at two different capital structures, one anall-equity firm and the other a levered firm with $4.32 million of debt financing at 12% interest. The all-equity firm will have a value of $7.2 million and 360,000 shares outstanding. The levered firm will have 144,000 shares outstanding.

a.Find the break-even EBIT for Alpha Company using EPS if there are no corporate taxes.

b.Find the break-even EBIT for Alpha Company using EPS if the corporate tax rate is 15%.

c.What do you notice about these two break-even EBITs for Alpha Company?

a.What is the break-even EBIT for Alpha Company using EPS if there are no corporate taxes?

(Round to the nearest dollar.)