Question: Dickson Corporation is comparing two different capital structures. Plan I would result in 2 2 , 0 0 0 shares of stock and $ 7

Dickson Corporation is comparing two different capital structures. Plan I would result in 22,000 shares of stock and $79,500 in debt. Plan II would result in 16,000 shares of stock and $238,500 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 $75,000. The all-equity plan would result in 25,000 shares of stock outstanding. What is the EPS for each of these plans? (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? (Do not round intermediate calculations.)
c. Ignoring taxes, at what level of EBIT will EPS be identical for Plans I and II?(Do not round intermediate calculations.)
d-1. Assuming that the corporate tax rate is 23 percent, what is the EPS of the firm? (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 23 percent, what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? (Do not round intermediate calculations.)
d-3. Assuming that the corporate tax rate is 23 percent, when will EPS be identical for Plans I and II?(Do not round intermediate calculations.)
\table[[a. Plan I EPS,],[a. Plan II EPS,],[a. All-equity EPS,],[b. Plan I and all-equity break-even EBIT,],[b. Plan II and all-equity break-even EBIT,],[c. Plan I and Plan II break-even EBIT,],[d-1. Plan I EPS,],[d-1. Plan II EPS,],[d-1. All-equity EPS,],[d-2. Plan I and all-equity break-even EBIT,],[d-2. Plan II and all-equity break-even EBIT,],[d-3. Plan I and Plan II break-even EBIT,]]
 Dickson Corporation is comparing two different capital structures. Plan I would

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