Bellwood Corp. is comparing two different capital structures. Plan I would result in 39,000 shares of stock and $108,000 in debt. Plan II would result in 33,000 shares of stock and $324,000 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 $160,000. The all-equity plan would result in 42,000 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 25 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 25 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 25 percent, when will EPS be identical for Plans I and II?(Do not round intermediate calculations.)