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Taro Inc. is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 20,000 shares of stock. The

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Taro Inc. is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 20,000 shares of stock. The debt and equity option would consist of 14,000 shares of stock plus $170,000 of debt with an interest rate of 8%. What is the break-even level of EBIT between these two options? Ignore taxes. Multiple Choice O $45,333 $48,928 $42.208 0 $44,141 $46,667

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