1. ABC corporation is considering three alternative capital structures, which are as below:

• PLAN A: 1,300 shares and a debt of Rs 80,000
• PLANB B: 2,900 shares and a debt of Rs 19,000
• PLAN C: All-equity plan with 3,400 shares

The firm has EBIT level of Rs 10,500, cost of debt of 10% and tax rate of 40%.

1. Which of the three plans has highest EPS?

What are the break-even levels of EBIT which give same level of EPS?