Question: James Corporation is comparing two different capital structures: an all - equity plan ( Plan I ) and a levered plan ( Plan II )
James Corporation is comparing two different capital structures: an allequity plan Plan I and a levered plan Plan II Under Plan I, the company would have shares of stock outstanding. Under Plan II there would be shares of stock outstanding and $ million in debt outstanding. The interest rate on the debt is percent, and there are no taxes.Required:aIf EBIT is $ Plan Is EPS is $ while Plan II's EPS is $ Do not include the dollar signs $ Round your answers to decimal places. egbIf EBIT is $ Plan Is EPS is $ and Plan II's EPS is $ Do not include the dollar signs $ Round your answers to decimal places. egcThe breakeven EBIT is $ Do not include the dollar sign $ Round your answer to the nearest whole dollar amount. eg
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