Please complete both questions because they are connected

Question 1 A firm is comparing two different capital structures: an allequity plan (plan I) and a levered plan (plan II). Under plan I, the company would have 145,000 shares of stock outstanding. Under plan II, there would be 125,000 shares of stock outstanding and $716,000 in debt outstanding. The interest rate on the debt is 8 percent, and there are no taxes. a. If EBIT is $300,000, what is the EPS for each plan? b. If EBIT is $600,000, what is the EPS for each plan? c. What is the break-even EBIT? Input Area: Output Area: Question 2 From Question 1, use the M\&M Proposition I to find the price per share of equity under each of the proposed plans. What is the value of the firm? Input Area: Plan I: Shares outstanding Plan II: Shares outstanding Debt outstanding Interest rate a. EBIT b. EBIT Output Area: Price per share Value of firm (I) Value of firm (II) \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \end{tabular} Question 1 A firm is comparing two different capital structures: an allequity plan (plan I) and a levered plan (plan II). Under plan I, the company would have 145,000 shares of stock outstanding. Under plan II, there would be 125,000 shares of stock outstanding and $716,000 in debt outstanding. The interest rate on the debt is 8 percent, and there are no taxes. a. If EBIT is $300,000, what is the EPS for each plan? b. If EBIT is $600,000, what is the EPS for each plan? c. What is the break-even EBIT? Input Area: Output Area: Question 2 From Question 1, use the M\&M Proposition I to find the price per share of equity under each of the proposed plans. What is the value of the firm? Input Area: Plan I: Shares outstanding Plan II: Shares outstanding Debt outstanding Interest rate a. EBIT b. EBIT Output Area: Price per share Value of firm (I) Value of firm (II) \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \end{tabular}