Problem 13.4 Break-Even EBIT (LO1) Trapper Corporation is comparing two different capital structures, an all-equity plan (Plan 1) and a levered plan (Plan II). Under Plan, the company would have 190,000 shares of stock outstanding. Under Plan II, there would be 140,000 shares of stock outstanding and $2.8 million in debt outstanding. The interest rate on the debt is 6 percent, and there are no taxes. a. If EBIT is $275,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) b. If EBIT is $525,000, what is the EPS for each plan? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) c. What is the break-even EBIT? (Do not round Intermediate calculations. Enter your answer In dollars, not millions of dollars, e.g., 1,234,567.) ces a. Plan I EPS $ Plan II EPS 2.19 1.97 2.97 3.01 b. Plan I EPS Plan II EPS C Break-even EBIT