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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

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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 433,470 shares of stock outstanding. Under Plan II, there would be 336,874 shares of stock outstanding and $4.1 million in debt outstanding. The interest rate on the debt is 8.85 percent, and there are no taxes. The breakeven EBIT is \$

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