Foundation, Incorporated, is comparing two different capital structures: an all$-$equity plan $($Plan I$)$ and a levered plan $($Plan II$).$ Under Plan I, the company would have $185,000$ shares of stock outstanding. Under Plan II$,$ there would be $135,000$ shares of stock outstanding and $$1\mathrm{.}9$ million in debt outstanding. The interest rate on the debt is $7$ percent, and there are no taxes.

a$.$

If EBIT is $$425,000,$ what is the EPS for each plan? $($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ If EBIT is $$675,000,$ what is the EPS for each plan? $($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$ What is the break$-$even EBITFoundation, Incorporated, is comparing two different capital structures: an all$-$equity plan

$($Plan I$)$ and a levered plan $($Plan II$).$ Under Plan I, the company would have $185,000$

shares of stock outstanding. Under Plan II$,$ there would be $135,000$ shares of stock

outstanding and $$1\mathrm{.}9$ million in debt outstanding. The interest rate on the debt is $7$

percent, and there are no taxes.

a$.$ If EBIT is $$425,000,$ what is the EPS for each plan? $($Do not round intermediate

calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

If EBIT is $$675,000,$ what is the EPS for each plan? $($Do not round intermediate

calculatimal places, e$.$g$.,32\mathrm{.}16.)$

What is the break$-$even EBIT? $($Do not round intermediate calculations and enter

a$.$ Plan I EPS

a$.$ Plan II EPS

c$.$ Break$-$even EBIT