Dickson Corporation is comparing two different capital structures. Plan I would result in 38,000 shares of stock and $106,500 in debt. Plan II would result in 32,000 shares of stock and $319,500 in debt. The interest rate on the debt is 6 percent. a. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $155,000. The all-equity plan would result in 41,000 shares of stock outstanding. What is the EPS for each of these plans? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. In part (a), what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? Note: Do not round intermediate calculations. c. Ignoring taxes, at what level of EBIT will EPS be identical for Plans I and II? Note: Do not round intermediate calculations. d-1. Assuming that the corporate tax rate is 24 percent, what is the EPS of the firm? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. d-2. Assuming that the corporate tax rate is 24 percent, what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? Note: Do not round intermediate calculations. d-3. Assuming that the corporate tax rate is 24 percent, when will EPS be identical for Plans I and II? Note: Do not round intermediate calculations.

a. Plan I EPS \begin{tabular}{|l|l|} \hline Plan II EPS \\ \hline All-equity EPS \\ \hline b. Plan I and all-equity break-even EBIT \\ \hline c. Plan II and all-equity break-even EBIT \\ \hline Plan I and Plan II break-even EBIT \\ \hline d-1. Plan I EPS \\ \hline Plan II EPS \\ \hline All-equity EPS \\ \hline d-2. Plan I and all-equity break-even EBIT \\ \hline Plan II and all-equity break-even EBIT \\ \hline d-3. Plan I and Plan II break-even EBIT \\ \hline \end{tabular}