Chapter 5 Assignment i Cain Auto Supplies and Able Auto Parts are competitors in the aftermarket for auto supplies. The separate capital structures for Cain and Able are presented below. 6 Carin Able Debt 10% Connon stock $140,000 280,000 Debte 10% Common stock 5288, ee 140,000 Total 15 points $420,000 Total $420,000 Common shares 28,600 Comon shares 14,000 BOX a. Compute EPS IT EBIT are $28.000, $42.000, and $59,000 (assume a 30 percent tax rate). (Round the final answers to 2 decimal places. Do not leave any empty spaces; Input a O wherever it is required.) Cain Able IPS at $25,000 EPS at $42.00 EPS at $59,000 b. What is the relationship between EPs and fevel or EBITZ 11 Earnings before interest and taxes is less than cost of deat 2. Farines before interest and takes equals cost of debt. 2. Earnings before interest and taxes is greater than cost of dot. Click to select IC toscloc! Click to select >> c. if the cost of debt went up to 12 percent and all other factors remained equal, what would be the indifference point for EBIT? Break even level