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The Company is comparing two different capital structures, an all - equity plan ( Plan I ) and a levered plan ( Plan II )

The Company is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, The Company would have 405,053 shares of stock outstanding. Under Plan II, there would be 337,151 shares of stock outstanding and $5.9 million in debt outstanding. The interest rate on the debt is 9.05 percent, and there are no taxes. The breakeven EBIT is $________.

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