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Zizou Acquaticswants to compare two possible capital structures. In the first,the company would have 190,000 shares of stock outstanding. In the second, the company would

Zizou Acquaticswants to compare two possible capital structures. In the first,the company would have 190,000 shares of stock outstanding. In the second, the company would have140,000 shares of stock outstanding and $2 million in debt outstanding. The interest rate on the debt is 8 percent annually, and there are no taxes.

What is the break-even EBIT under these two capital structuures? (Enter your answer in wholedollars, not millions of dollars, e.g., 1,234,567.)

What is break-even EBIT

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