Southwest Sands currently has 23,500 shares of stock outstanding. It is considering issuing $137,000 of debt at an interest rate of 7.6 percent. The break-even level of EBIT between these two capital structure options is $77,000. How many shares of stock will be repurchased if the company undergoes the recapitalization? Ignore taxes.

Southwest Sands currently has 23,500 shares of stock outstanding. It Is considering Issulng $137,000 of debt at an Interest rate of 76 percent. The break-even level of EBIT between these two capital structure options is $77,000. How many shares of stock will be repurchased if the company undergoes the recapitalization? Ignore taxes. 272373 shares O 317769 shares 3,442.50 shares O 3,018.80 shares 2,496.76 shares