You are the Chief Financial Officer of Nike, Inc. and you are reviewing the companys capital structure. You are in the process of preparing a report for the CEO that addresses the following questions: Use 2020 Fiscal Financial Statements in answer.

1. Calculate the breakeven EBIT for the company?

2. Determine whether the company has too little debt or too much debt based on your calculation of the breakeven EBIT.

3. Explain why you have chosen to operate at the current level of debt in your capital structure rather than changing it based on your calculation of breakeven EBIT (be specific with the company and industry).