S16-04 Break-Even EBIT (LO1) Round Hammer is comparing two different capital structures: An all-equity plan (Plan l) and a levered plan (Plan II). Under Plan I, the company would have 180,000 shares of 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 rourid intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) calculations and round your answers to 2 decimal places, e.g., 32.16.) answer in dollars, not millions of dollars, e.g., 1,234,567) b. If EBIT is $600,000, what is the EPS for each plan? (Do not round intermediate c. What is the break-even EBIT? (Do not round intermediate calculations. Ente our a. Plan l Plan II b. PlanI Plan II c. | Break-even EBIT Prev 1 of 7 ! Next>