Destruction Builders has 10,000 shares of stock outstanding and no debt.The new CFO is considering issuing $65,000 of debt and using the proceeds to retire 750 shares of stock.The coupon rate on the debt is 7.2 percent.What is the break-even level of earnings before interest and taxes between these two capital structure options?
A)$42,035
B)$43,695
C)$65,000
D)$60,200
E)$62,400

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The Answer of Destruction Builders has 10,000 shares of stock outstanding and no debt.The new CFO is considering issuing $65,000 of debt and using the proceeds to retire 750 shares of stock.The coupon rate on the debt is 7.2 percent.What is the break-even level of earnings before interest and taxes between these two capital structure options?
A)$42,035
B)$43,695
C)$65,000
D)$60,200
E)$62,400

Destruction Builders Has 10,000 Shares of Stock Outstanding and No