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"The MPD corporation must raise $20 million to finance its current capital budget. A common stock issue could be made at a price of $ 10 per share, bonds could be issued with an interest rate of 8%. The firm currently has 3,000,000 shares outstanding and $ 10 million in ponds with an interest rate of 12%. There is no outstanding preferred stock. The firm's tax rate is 40%. What is the indifferent level of EBIT (EBIT*)?

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