Question: ( PLEASE PLEASE PLEASE JUST DO THE EBIT SOLUTIONS, I NEED A NUMERICAL ANSWER, NO EPS, JUST EBIT PLEASE ) Dickson Corporation is comparing two
PLEASE PLEASE PLEASE JUST DO THE EBIT SOLUTIONS, I NEED A NUMERICAL ANSWER, NO EPS, JUST EBIT PLEASE Dickson Corporation is comparing two different capital structures. Plan I would result in shares of stock and $ in debt. Plan II would result in shares of stock and $ in debt. The interest rate on the debt is percent.
a Ignoring taxes, compare both of these plans to an allequity plan assuming that EBIT will be $ The allequity plan would result in shares of stock outstanding. What is the EPS for each plan?
Note: Do not round intermediate calculations and round your answers to decimal places, eg
b What is the breakeven level of EBIT for Plan I as compared to that for an allequity plan? What about for Plan II as compared to the allequity plan?
Note: Do not round intermediate calculations and round your answers to the nearest whole number, eg
c What is the breakeven level of EBIT for Plan I as compared to Plan II
Note: Do not round intermediate calculations and round your answer to the nearest whole number, eg
d Assuming the corporate tax rate is percent, what is the EPS for each plan?
Note: Do not round intermediate calculations and round your answers to decimal places, eg
d Assuming the corporate tax rate is percent, what is the breakeven level of EBIT for Plan I as compared to that for an allequity plan? What about for Plan II as compared to the allequity plan?
Note: Do not round intermediate calculations and round your answers to the nearest whole number, g
d Assuming the corporate tax rate is percent, what is the breakeven level of EBIT for Plan I as compared to Plan II
Note: Do not round intermediate calculations and round your answer to the nearest whole number, eg
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