XYZ, Inc. is an all-equity firm with 52,000 shares of stock outstanding. The company is considering the issue of $300,000 in debt at an interest rate of 10 percent and using the proceeds to repurchase stock. Under the new capital structure, there would be 32,000 shares of stock outstanding. Ignore taxes. What is the break-even level of EBIT between the two plans? Question options: $62,500 $97,500 $127,273 $78,000 $109,651