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Your company is comparing two different capital structures, an all-equity plan (Plan A) and a levered plan (Plan B). Under Plan A, the company would

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Your company is comparing two different capital structures, an all-equity plan (Plan A) and a levered plan (Plan B). Under Plan A, the company would have 200,000 shares of stock outstanding. Under Plan B, the company would have 100,000 shares of stock outstanding and $6 million in debt outstanding. The interest rate on debt is 10% and there are no taxes. What is the break-even EBIT? $1,200,000 $1,000,000 $1,500,000 $1,250,000

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