Southern Cornbread Company is an all equity firm headquartered in Birmingham, Alabama. Discussions have been held to look at a different capital structure which would include acquiring some debt $($leverage$)$ Under pressure from a new group of major stockholders, however, Walker is considering acquiring some debt $($leverage$)$ which might improve earnings per share. The company currently has $8000$ shares of common stock outstanding, but he is thinking about borrowing $$16,000$ at $8\%$ per year and buying back $2000$ of those shares. The Southern Cornbread Company is currently exists in a world with no taxes.

Refer to the scenario above. What is the EBIT that would make the choice between his options $($all equity or include leverage$)$ indifferent. $($break even EBIT$).$