Albine Inc. has no debt. It has 10,000 shares of equity outstanding with a market price of $100. It is considering two alternative recapitalization plans. The low debt plan calls for issuing $200,000 of debt while the high debt plan would imply issuing $400,000 of debt. In both cases the cost of debt would be 10 percent. The firm does not pay any tax. Question If EBIT will be equal to $100,000, what would EPS be under each of the two recapitalization plans? Which plan do you chose? Explain and justify your decision.