Santos Unlimited (SU) was originally unlevered with 4200 shares outstanding. However, after a major financial restructur

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Santos Unlimited (SU) was originally unlevered
with 4200 shares outstanding. However,
after a major financial restructure, SU now has
$35000 of debt, with an annual interest
expense of 8 percent. The restructuring
has reduced the number of shares to 3100. A
group of shareholders of SU are not convinced that this move
towards adopting financial leverage is a good idea. Their main
argument is that there is now some range of EBIT, however low, that
will make the shareholders worse off than before. Help understand
the situation better by computing the level of earnings before
interest and tax (EBIT) that would make shareholders indifferent
between being unlevered (i.e. not having any debt) and levered
(i.e. having debt). Assume a 30 percent
corporate tax rate.

Answer: $

Place your answer to the nearest dollar without a dollar sign or a
comma (if applicable).