Alpha Company is looking at two different capital structures, one an all-equity firm and the other a levered firm with $4.8 $4.8 million of debt financing at 8% interest. The all-equity firm will have a value of $9.6 million and 480 shares outstanding. The levered firm will have 240,000 shares outstanding.
Find the break even EBIT for Alpha Company using EPS if there are no corporate taxes.
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