Haskell Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of stock and $120,000 in debt. Plan II would result in 11,500 shares of stock and $140,000 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 $70,000. The all-equity plan would result in 15,000 shares of stock outstanding. What is the EPS for each of these plans?

Plan I = $

Plan II = $

All equity = $

b.) In part (a), what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan?

Plan I and All equity = $

Plan II and All equity = $

c.) Ignoring taxes, at what level of EBIT will EPS be identical for Plan I and Plan II?

EBIT = $

d1.) Assuming that the corporate tax rate is 40 percent, what is the EPS of the firm?

Plan I = $

Plan II = $

All equity = $

d2.) Assuming that the corporate tax rate is 40 percent, what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? Plan I and All equity = $ Plan II and All equity = $ d3.) Assuming that the corporate tax rate is 40 percent, when will EPS be identical for Plans I and II? EBIT = $