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1. Haskell Corp. is comparing two different capital structures. Plan I would result in 13,000 shares of stock and $130,500 in debt. Plan II would

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1. Haskell Corp. is comparing two different capital structures. Plan I would result in 13,000 shares of stock and $130,500 in debt. Plan II would result in 10,400 shares of stock and $243,600 in debt. The interest rate on the debt is 10 percent. (15 points) a. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $56,000. The all-equity plan would result in 16,000 shares of stock outstanding. Which of the three plans has the highest EPS The lowest? b. In part (a), what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? Is one higher than the other? Why? c. Ignoring taxes, when will EPS be identical for Plans I and

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