The EBIT indifference level associated with the two financing plans is $___ (round to the nearest dollar)

Complete the segment of the income statement for Plan A below: (Round income statement amounts to the nearest dollar except for the EPS to the nearest cent.)

Complete the segment of the income statement for Plan B below: (Round income statement amounts to the nearest dollar except for the EPS to the nearest cent.)

(Related to Checkpoint 15.2) (EBIT-EPS analysis) Abe Forrester and three of his friends from college have interested a group of venture capitalists in backing their business idea. The proposed operation would consist of a series of retail outlets to distribute and service a full line of vacuum cleaners and accessories. These stores would be located in Dallas, Houston, and San Antonio. To finance the new venture two plans have been proposed Plan A is an all-common-equity structure in which $2.2 million dollars wouldberased by selling 90,000 shares of common stock Plan B would involve issuing $1.4 million in long-term bonds with an effective interest rate of 11.6 percent plus another $0.8 million would be raised by selling 45,000 shares of common stock. The debt funds raised under Plan B have no fixed maturity date, in that this amount of financial leverage is considered a permanent part of the firm's capital structure Abe and his partners plan to use a 34 percent tax rate in their analysis, and they have hired you on a consulting basis to do the following ind the EBIT indifference level associated with the two financing plans b. Prepare a pro forma income statement for the EBIT level solved for in part a that shows that EPS will be the same regardless whether Plan A or B is chosen Stock Plan EBIT Less: Interest Expense Earnings Before Taxes Less: Taxes at 40% Net Income Number of Common Shares EPS Bond/Stock Plan EBIT Less: Interest Expense Earnings Before Taxes Less: Taxes at 40% Net Income Number of Common Shares EPS