Yang Centers wants to report atleast $1.75 in earnings per share. Given the following information, how much debt should be in its capital structure?
Book value per share: $8.75
cost of debt: 10%
EBIT: $500,000
tax bracket: 30%
total capital: $4,000,000
a) 457,142
b) 520,050
c) 2,800,000
d) 3,461,538