A large Canadian retailer is analyzing both a leveraged and an unleveraged capital structure. The...

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Accounting

A large Canadian retailer is analyzing both a leveraged and an unleveraged capital structure. The all equity capital option they are considering would consist of 20,000 shares of stock. The debt and equity option would consist of 14,000 shares of stock plus $170,000 of debt with an interest rate of 8%. 



What is the break-even level of earnings before interest and taxes between these two options?

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