The Megalops Company has no debt outstanding and its financial position is given by the following data: Expected EBIT $800,000 Growth rate in EBIT, 0% 8 9% Cost of equity, Shares outstanding, 150,000 n Tax rate 25% Megalops plans to sell bonds and repurchase stock. If it moves to a capital structure with 30% debt based on market values, its cost of equity will increase to 12%. Bonds can be sold at a cost of 7%. Based on the new capital structure what is the new earnings per share? $4.81 $4.21 $2.53 $2.89 49er Inc. has fixed operating costs of $750,000 and variable costs of $42 per unit. If it sells product for $75 per unit, what is the break-even quantity? 30,000 16,000 71,429 22,727