Vapid is trying to choose between two financing alternatives. Under Option A, they will sell 127.6 new shares at the current price, Under Option B, they will borrow $300 at 8%. There are currently 900 shares outstanding and the firm has $400 of debt at 8%. The tax rate is 50%. Use this information to answer the following questions. Selected Financial Information Vapid Motors Inc Current Option A Option B Debt $400 $400 $700 ko 8% 89 8% Interest $32 $32 $56 Tax Rate 50% 50% 50% Price $2.35 NA N/A Shares Outstanding 900 734.4 600 Part 1 What is the EBIT-EPS indifference level? Round your answer to the nearest whole dollar Analysts expect the Rumpel Felt Company to generate EBIT of $25 million annually in perpetuity (starting in one year). Rumpel is all equity financed and its stockholders require a return of 10%. If Rumple borrows $110 million (interest-only in perpetuity) with a cost of debt of 2%, what will the equity be worth? Assume Rumpel operates in Utopia where corporate taxes are zero