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Already have part A and the first part of part B. Just need help on the second part of B. Thank you!!! (EBIT-EPS analysis) Three

Already have part A and the first part of part B. Just need help on the second part of B. Thank you!!! image text in transcribed
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(EBIT-EPS analysis) Three recent graduates of the computer science program at the University of Tennessee are forming a company that will write and distnbute new application software for the IPhone. Initially, the corporation will operate in the southern region of Tennessee, Georgia, North Cafolina, and South Carolina A small group of private investors in the Atlanta, Georgia area is interested in financing the startup company and two financing plans have been put forth for consideration - The first (Plan A) is an all-common-equity capital structure. $2.0 million dollars would be raised by selling common stock at $20 per common share - Plan B would involve the use of financial leverage. $1.0 millon dollars would be raised by selling bonds with an effective interest rate of 11.0 percent (per annum), and the remaining $1.0 million would be raised by selling common stock at the $20 price per share. The use of financial leverage is considered to be a permanent part of the firm's captalization, so no fixed maturity date is needed for the analysis A 30 percent tax rate is deemed appropriate for the analysis a. The EBIT indifference level associated with the two financing plans is $220000. (Round to the nearest dollar.) b. Using EBIT of $300,000, complete the segment of the income statement for Plan A below (Round income statement Using EBIT of $300,000, complete the segment of the income statement for Plan B below: (Round incor

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