Bellwood Corp. is comparing two different capital structures. Plan I would result in 27,000 shares of stock and $87,000 in debt. Plan II would result in 21,000 shares of stock and $261,000 in debt. The interest rate on the debt is 7 percent.

a.	Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $100,000. The all-equity plan would result in 30,000 shares of stock outstanding. What is the EPS for each of these plans? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b.	In part (a), what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? (Do not round intermediate calculations.)
c.	Ignoring taxes, at what level of EBIT will EPS be identical for Plans I and II? (Do not round intermediate calculations.)
d-1.	Assuming that the corporate tax rate is 23 percent, what is the EPS of the firm? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
d-2.	Assuming that the corporate tax rate is 23 percent, what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? (Do not round intermediate calculations.)
d-3.	Assuming that the corporate tax rate is 23 percent, when will EPS be identical for Plans I and II? (Do not round intermediate calculations.)

a.Plan I EPS:

Plan II EPS:

All equity EPS:

b.Plan I and all-equity break-even EBIT:

c.Plan II and all-equity break-even EBIT:

Plan I and Plan II break-even EBIT:

d-1.Plan I EPS:

Plan II EPS:

All equity EPS:

d-2.Plan I and all-equity break-even EBIT:

Plan II and all-equity break-even EBIT:

d-3.Plan I and Plan II break-even EBIT: