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A Winnipeg firm is considering two separate capital structures. The first is an all-equity plan consisting...

A Winnipeg firm is considering two separate capital structures. The first is an all-equity plan consisting of 25,000 shares of stock. The second plan would consist of 10,000 shares of stock and $90,000 in debt at a cost of 8%. Ignore taxes. What is the break-even EBIT?

Multiple choice

A. 12000

B 19000

c 18000

D 15000

E 21000

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