Question 2 - Homework 2 - Cox C My folder + ezto.mheducation.com/ext/map/index.html?_con-con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/q... Help Save & Exit Submit Homework 2 Saving Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. 7 2 points 01:01:02 Problem 16-4 Break-Even EBIT Byrd Corporation is comparing two different capital structures, an all-equity plan (Plan I) 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., 32.16.) 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, rounded to the nearest whole number, e.g., 1,234,567.) Mc Hill Graw Answer is complete but not entirely correct. a. Plan I $ 3.29 Plan II $ 3.29 b. Plan I $ 4.58 Plan II $ 4.58x Break-even C. $ 1,421,700 EBIT < Prev 2 of 13 Next Return to question