Destin Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of stock and $100,000 in debt. Plan II would result in 8,700 shares of stock and $155,000 in debt. The interest rate on the debt is 5 percent.

Please correct the wrong answers

a. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $80,000 The all-equity plan would result in 18,000 shares of stock outstanding. What is the EPS for each of these plans? (Round your answers to 2 decimal places. (e.g., 32.16)) EPS Plan I Plan II All equity 6.25 8.30 4.44 b. In part (a), what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? EBIT Plan I and all-equity Plan Il and all-equity 58280 3 46378 3 c. Ignoring taxes, at what level of EBIT will EPS be identical for Plans I and l1? EBIT 15000 d-1 Assuming that the corporate tax rate is 40 percent, what is the EPS of the firm (Round your answers to 2 decimal places. (e.g., 32.16)) EPS Plan l Plan II All equity 3.75 4.98 2.67 d-2 Assuming that the corporate tax rate is 40 percent, what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? Plan I and all-equity $ Plan Il and all-equity $ EBIT 58400 46465 3 d-3 Assuming that the corporate tax rate is 40 percent, when will EPS be identical for Plans I and ll? EBIT 15000