Question: Please make sure the answers are correct and explain how you got them, thanks! Dickson Corporation is comparing two different capital structures. Plan I would

Please make sure the answers are correct and explain how you got them, thanks!
 Please make sure the answers are correct and explain how you

Dickson Corporation is comparing two different capital structures. Plan I would result in 25,000 shares of stock and $84,000 in debt. Plan Il would result in 19,000 shares of stock and $252,000 in debt. The interest rate on the debt is 5 percent 0. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $90,000. The oll-equity plan would result in 28,000 shares of stock outstanding. What is the EPS for each of these plans? Note: Do not round intermediate calculations and round your onswers to 2 decimal places, e.9., 32.16. b. In part (a), what are the break-even levels of EBIT for each plon as compared to that for an all-equity plan? Note: Do not round intermediate calculations. c. Ignoring toxes, at what level of EBIT will EPS be identical for Plans I and II? Note: Do not round intermediate calculations. d.1. Assuming that the corporote tax rate is 21 percent, what is the EPS of the firm? Note: Do not round intermediate calculations and round your onswers to 2 decimal places, e.g., 32.16 . d.2. Assuming thot the corporate tox rate is 21 percent, what are the break-even levels of EBIT for each plan as compared to that for an ollequity plan? Note: Do not round intermediote calculotions. d.3. Assuming that the corporate tax rate is 21 percent, when will EPS be identical for Pians I and II? Note: Do not round intermediate calculations

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