Business
Business, 29.07.2019 22:20, kevenluna10oytivm

Round hammer is comparing two different capital structures: an all-equity plan (plan i) and a levered plan (plan ii). under plan i, the company would have 170,000 shares of stock outstanding. under plan ii, there would be 120,000 shares of stock outstanding and $2.4 million in debt outstanding. the interest rate on the debt is 7 percent, and there are no taxes. a. if ebit is $450,000, 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 $700,000, 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.)

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