HELP

Problem 16-6 Break-Even EBIT and Leverage (L01, 2] Bellwood Corp. is comparing two different capital structures. Plan | would result in 24,000 shares of stock and $82,500 in debt. Plan II would result in 18,000 shares of stock and $247,500 in debt. The interest rate on the debt is 4 percent. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $85,000. The all-equity plan would result in 27,000 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 25 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 25 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 25 percent, when will EPS be identical for Plans I and II? (Do not round intermediate calculations.) & Answer is not complete. Plan | EPS $ $ 3.40 4.17 Plan II EPS All equity EPS Plan I and all-equity break-even EBIT Plan II and all-equity break-even EBIT Plan I and Plan II break-even EBIT $ $ $ 29,700 29,700 29,700 Plan I EPS Plan II EPS $ 2.36 All equity EPS Plan I and all-equity break-even EBIT Plan II and all-equity break-even EBIT om Plan I and Plan II break-even EBIT