Business, 10.04.2020 19:24, boneyke3720

Uptown Construction is comparing two different capital structures. Plan I would result in 16,000 shares of stock and $160,000 in debt. Plan II would result in 18,000 shares of stock and $110,000 in debt. The interest rate on the debt is 9 percent. Ignoring taxes, EPS will be identical for Plans I and II when EBIT equals which one of the following?

A. $48,550
B.$50,400
C. $69,600
D. $53,700
E. $60,750

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Uptown Construction is comparing two different capital structures. Plan I would result in 16,000 sha...