Question: Foundation, Incorporated, is comparing two different capital structures, an allequity plan (Plan I) and a levered plan (Plan ii). Under Plan 1, the company would

 Foundation, Incorporated, is comparing two different capital structures, an allequity plan

Foundation, Incorporated, is comparing two different capital structures, an allequity plan (Plan I) and a levered plan (Plan ii). Under Plan 1, the company would have 155,000 shares of stock outstanding. Under Plan 11, there would be 105,000 shares of stock outstanding and $13 million in debt outstanding. The interest rate on the debt is 6 percent, and there are no taxes. a. If EEIT is $200,000, what is the EPS for each plan? Note: Do not round Intermediate calculations and round your answers to 2 decimal places, e.9. 32.16. b. If EBIT is $450.000, What is the EPS for each pian? Notet Do not round intermediate calculations and round your answers to 2 decimal places, e.9., 32.16. c. What is the break-even EBIT? Noter Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, .,9.1,234,567

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