Question: Foxland, Incorporated, is comparing two different capital structures: an all - equity plan ( Plan I ) and a levered plan ( Plan II )

Foxland, 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 165,000 shares of stock outstanding. Under Plan II, there would be 115,000 shares of stock outstanding and
$1.5 million in debt outstanding. The interest rate on the debt is 8 percent, and there are no taxes.
a. If EBIT is $600,000, what is the EPS for each plan?
Note: Do not round intermedlate calculatlons and round your answers to 2 decimal places, e.g.,32.16.
b. If EBIT is $850,000, what is the EPS for each plan?
Note: Do not round Intermedlate calculations and round your answers to 2 decimal places, e.g.,32.16.
c. What is the break-even EBIT?
Note: Do not round intermedlate calculatlons and enter your answer In dollars, not millions of dollars, e.g.,1,234,567.
 Foxland, Incorporated, is comparing two different capital structures: an all-equity plan

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