1. The MPD Corporation must raise $20 million to finance its current capital budget. A common stock issue could be made at a price of $10 per share; bonds could be issued with an interest rate of 8%. The firm currently has 3,000,000 shares outstanding and $10 million in bonds with an interest rate of 12%. There is no outstanding preferred stock. The firms tax rate is 40%. What is the indifferent level of EBIT (EBIT*)?