ABC Corporation is comparing two different capital structures, an all equity plan (Plan l) and a levered plan (Plan II). Under Plan I, ABC would have 60,000 shares of stock outstanding. The share price is $20. Under Plan II, ABC would issue $400,000 worth of debt and repurchase some of its shares. The interest rate on debt is 5% and there are no taxes. What is the break-even EBIT? $70,000 $30,000 $40,000 $60,000