Edward Corporation expects to earn $40,000 in EBIT every year forever. The company currently has no debt and its cost of equity is 15 percent. The tax rate is 20 percent. The company can borrow at 8 percent. The CFO of the company decides to change the company's capital structure by taking on $X debt forever. And the borrowed money will be used to buy back $X worth of equity. If Edward is worth $300,000 after the capital restructuring, what is the value of X?

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