your firm is considering two financing plans The key information follows use a 40 tax rate Source of funds Plan A Plan B Long term Dent $500 6 $2,500 10 Preferred Stock 50 shares, $2 dividend per share 10 shares, $2 dividend per share Common Stock 60 shares 15 shares Draw the Earning Per Share and Earning Before Interest Tax line for each plan on the same set axes Over what range of Earnings before income tax would you prefer Plan A Show in excel if possible

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Question: your firm is considering two financing plans. The key information follows: use a 40% tax rate Source of funds Plan A Plan B Long term

your firm is considering two financing plans. The key information follows: use a 40% tax rate

Source of funds	Plan A	Plan B
Long term Dent	$500 @ 6%	$2,500 @ 10%
Preferred Stock	50 shares, $2 dividend per share	10 shares, $2 dividend per share
Common Stock	60 shares	15 shares

Draw the Earning Per Share and Earning Before Interest Tax line for each plan on the same set axes. Over what range of Earnings before income tax would you prefer Plan A?

Show in excel if possible

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