2. Assume your company comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 250,000 shares of stock outstanding. Under Plan II, there would be 125,000 shares of stock outstanding and $2,500,000 in debt outstanding. The interest rate on the debt is 8 percent, and there are no taxes. 1. If EBIT is $500,000, which plan will result in the higher EPS? [7 Points] 2. If EBIT is $250,000, which plan will result in the higher EPS? [7 Points] 3. What is the break-even EBIT? [10 Points]