Bartlett Specialists is considering two different capital structures.The first option consists of 15 000 shares of stock.The second option consists of 9000 shares of stock plus $80 000 of debt at an interest rate of 7.5 per cent.Ignore taxes.What is the break-even level of earnings before interest and taxes (EBIT)between these two options?
A)$18 600
B)$19 400
C)$20 800
D)$15 000
E)$20 000

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The Answer of Bartlett Specialists is considering two different capital structures.The first option consists of 15 000 shares of stock.The second option consists of 9000 shares of stock plus $80 000 of debt at an interest rate of 7.5 per cent.Ignore taxes.What is the break-even level of earnings before interest and taxes (EBIT)between these two options?
A)$18 600
B)$19 400
C)$20 800
D)$15 000
E)$20 000

Bartlett Specialists Is Considering Two Different Capital Structures