Item$3$

$8\mathrm{.}33$points

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Item $3$

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 $180,000$ shares of stock outstanding. Under Plan II$,$ there would be $130,000$ shares of stock outstanding and $$2\mathrm{.}6$ million in debt outstanding. The interest rate on the debt is $8$ percent, and there are no taxes.

If EBIT is $$575,000,$ what is the EPS for each plan?

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

If EBIT is $$825,000,$ what is the EPS for each plan?

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

What is the break$-$even EBIT?

Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e$.$g$.,1,234,567.$