$2.$Nova Corp. is considering different capital structures. Option A would result in $13,000$

shares of stock and $$130,500$ in debt. Option B would result in $10,400$ share of stock

and $$243,600$ in debt. Option C would be an all equity plan of $16,000$ shares. The

interest rate on the debt is $10\%.$ There is also no tax. $(7$ points$)$

a$.$ Assuming an EBIT of $$56,000,$ which of the three options would yield the highest

EPS?

b$.$ What are the break$-$even levels of EBTIT for Option A and B as compared to that

of all equity Option C$?$ Is one higher than the other? Why?