The following table contains a list of selected information from the financial statements of Anfield Co.

Select Financial Data
Long-term debt	$400.0 million
Borrowing rate	8%
Interest expense	$32 million
Tax rate	30%
Preferred stock dividends	$7 million
Earnings per share	$0

Based on the preceding information, what is the EBIT that Anfield Co. must achieve in order to hit its financial breakeven point?

445.71

46.20

39.90

410.00

42.00

After further analysis, Anfield Co. has determined that it will not be issuing preferred dividends as it had previously planned. What sort of additional decision-making flexibility will this offer the managers of Anfield Co., while still allowing the company to meet its financial breakeven point?

Anfield Co. could repurchase 20% of its outstanding common stock.

Anfield Co. could borrow an additional $150 million at its current borrowing rate to finance expansion.

Anfield Co. could borrow an additional $125 million at its current borrowing rate to finance expansion.

Anfield Co. could pay off 75% of its long-term debt.