Question: kyle corporation is comparing two different capital structures. an all equity plan (plan1) and a levered pan (plan 11). Under plan 1 there are 775000

kyle corporation is comparing two different capital structures. an all equity plan (plan1) and a levered pan (plan 11). Under plan 1 there are 775000 shares of stock outstandingand under plan 11 525000 shares of stock outstanding and 9.75 million in debt. The interest rate on the debt is 7%. and there are no taxes. part a- assume the ebit is 2.8 million what is the EPS FOR EACH PAN-- AND PART B ASSUME THE ebitis 3.3 million, compute the EPS for each plan and finally what is the breakeven EBIT

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