Problem #$4($Break$-$Even EBIT$)$: Franklin Corporation is comparing two different capital structures, all$-$equity plan $($Plan I$)$ and a levered plan $($Plan II$).$ Under Plan I, the company would $315,000$ shares of stock outstanding. Under Plan II$,$ there would be $225,000$ shares of stock outstanding and $$4\mathrm{.}14$ million in debt outstanding. The interest rate on the debt is $10$ percent and there are no taxes.

Part A: If EBIT is $$750,000,$ which plan will result in the higher EPS?

Part B: If EBIT is $$1,750,000,$ which plan will result in the higher EPS?

Part C: What is the break$-$even EBIT?