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Solve using Excel and show your work: ABC Inc. is debating between all...

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Finance

Solve using Excel and show your work:

image ABC Inc. is debating between all equity financing vs having some debt in the capital structure. The all equity capital structure would consist of 20,000 shares of stock. The debt and equity option would consist of 15,000 shares of stock plus \\( \\$ 350,000 \\) of debt with an interest rate of 5 percent. a) What is the break-even level of earnings before interest and taxes between these two options? Ignore taxes. b) if ABC Inc. is expected the EBIT to higher than the break-even EBIT, they should chose the capital structure A. With Debt B. Without Debt

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