Rolston Corp. is comparing two different capital structures: an all$-$equity plan $($Plan I$)$ and a levered plan $($Plan II$).$ Under Plan I, Rolston

would have $275,000$ shares of stock outstanding. Under Plan II$,$ there would be $195,000$ shares of stock outstanding and $$3\mathrm{.}0$ million

in debt outstanding. The interest rate on the debt is $9$ percent and there are no taxes.

a$.$ If EBIT is $$760,000,$ calculate the EPS for each plan. $($Do not round intermediate calculations. Round the final answers to $2$

decimal places. Omit $ sign in your response.$)$

Earnings per share under Plan I

Earnings per share under Plan II

b$.$ If EBIT is $$1,520,000,$ calculate the EPS for each plan. $($Do not round intermediate calculations. Round the final answers to $2$

decimal places. Omit $ sign in your response.$)$

Earnings per share under Plan I I

Earnings per share under Plan II

c$.$ Calculate the break$-$even EBIT. $($Do not round intermediate calculations. Enter the answer in dollars. Omit $ sign in your

response.$)$

Break$-$even EBIT