Question: 2. A rm is considering nancing its $20 million dollars of assets 1with one of two plans. Plan A consists of $3 million of debt

2. A rm is considering nancing its $20 million dollars of

2. A rm is considering nancing its $20 million dollars of assets 1with one of two plans. Plan A consists of $3 million of debt with an interest rate of 6.6%, and 1.? million shares of common stock. Plan B consists of $10 million dollars in debt with an interest rate of 12%, and 1 million shares of common stock. The rm's tax rate is 30%. Calculate the EBITEPS indifference (breakeven) point, and then calculate the earnings per share at this level of EBIT. (EBITBE = $1,465,?14 and EPS = $0.522)

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