keenan corp is comparing two different capital structure plan 1 would result in 7000 shares of stock and $160,000 in debt plan 2 would result in 5000 shares of stock and $24,000 in debt the interest rate on the debt is 10 percent Q ignoring taxes, compare the both of these plans to an all equity plan assuming thta EBIT will be $39,000 the all equity plan would result in 11,000 shares of stock outstanding which of the three plans has the highest EPS the lowest

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Question: keenan corp. is comparing two different capital structure. plan 1: would result in 7000 shares of stock and $160,000 in debt. plan 2: would result

keenan corp. is comparing two different capital structure.

plan 1: would result in 7000 shares of stock and $160,000 in debt.

plan 2: would result in 5000 shares of stock and $24,000 in debt. the interest rate on the debt is 10 percent.

ignoring taxes, compare the both of these plans to an all equity plan assuming thta EBIT will be $39,000. the all equity plan would result in 11,000 shares of stock outstanding. which of the three plans has the highest EPS?the lowest?

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