Return to question Round Hammer 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 180,000 shares o stock outstanding. Under Plan II, there would be 130,000 shares of stock outstanding and $1.925 million in debt outstanding. The interest rate on the debt is 8 percent, and there are no taxes a. If EBIT is $400,000, 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 $600,000, 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.) Answer is complete but not entirely correct. a. $ 2.93 2.27 X S b. $ Plan Plan 11 Plan 1 Plan 11 Break-even EBIT 4.15 X 3.88 $ $ 1,016,800