What is the break-even level of earnings before interest


Becker Industries is considering an all equity capital structure against one with both debt and equity. The all equity capital structure would consist of 27,000 shares. The debt and equity option would consist of 16,000 shares plus $270,000 of debt with an interest rate of 6 percent. What is the break-even level of earnings before interest and taxes between these two options? Ignore taxes.

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Accounting Basics: What is the break-even level of earnings before interest
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