Break-Even EBIT Hammerson plc is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Hammerson would have 712 million shares of equity outstanding. Under Plan II, there would be 475 million shares of equity outstanding and £1 billion in debt outstanding. The interest rate on the debt is 5 per cent and there are no taxes.

(a) If EBIT is £459 million, what is the EPS?

(b) If EBIT is £80 million, what is the EPS?

(c) What is the break-even EBIT?