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Your firm currently has $8 million in liabilities and $8 million in equity. You are considering to restructure by issuing $8 million in equity to

Your firm currently has $8 million in liabilities and $8 million in equity. You are considering to restructure by issuing $8 million in equity to retire your debt. The interest rate on debt is 10% and the stock price is $25. Corporate tax rate is 0%. 1. Calculate the break-even EBIT for these two plans.

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