A company is comparing two different capital structures. Plan I would result in 5,000 shares of stock and $120,000 in debt. Plan II would result in 7,000 shares of stock and $72,000 in debt. The interest rate on the debt is 10%. a) Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $15,000. The all-equity plan would result in 10,000 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 the all-equity plan? c) Ignoring taxes, when will EPS be identical for Plans I and II?