Bellwood Corp. is comparing two different capital structures. Plan I would result in 31,000 shares of stock and $93,000 in debt. Plan II would result in 25,000 shares of stock and $279,000 in debt. The interest rate on the debt is 7 percent.

a.	Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $120,000. The all-equity plan would result in 34,000 shares of stock outstanding. What is the EPS for each of these plans?
b.	In part (a), what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan?
c.	Ignoring taxes, at what level of EBIT will EPS be identical for Plans I and II?
d-1.	Assuming that the corporate tax rate is 22 percent, what is the EPS of the firm?
d-2.	Assuming that the corporate tax rate is 22 percent, what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan?
d-3.	Assuming that the corporate tax rate is 22 percent, when will EPS be identical for Plans I and II?