Problem 16-4 Break-Even EBIT (LO1] 5 11.11 points Foundation, Incorporated, is comparing two different capital structures: an all-equity plan (Plan 1) and a levered plan (Plan II). Under Plan I, the company would have 190,000 shares of stock outstanding. Under Plan II, there would be 140.000 shares of stock outstanding and $2 million in debt outstanding. The interest rate on the debt is 8 percent, and there are no taxes. a. If EBIT is $625.000, what is the EPS for each plan? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.18.) b. If EBIT is $875.000. 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 and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) eBook Hint References a. Plan I EPS a. Plan ll EPS b. Plan I EPS b. Plan II EPS c. Break-even EBIT