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Bellwood Corp. is comparing two different capital structures. Plan I would result in 24,000 shares of stock and $82,500 in debt. Plan I would result

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Bellwood Corp. is comparing two different capital structures. Plan I would result in 24,000 shares of stock and $82,500 in debt. Plan I would result in 18,000 shares of stock and $247,500 in debt. The interest rate on the debt is 4 percent. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $85,000. The all-equity plan would result in 27,000 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.) a. Plan I EPS Plan EPS All equity EPS b. Plan land all-equity break-even EBIT Plan Il and all-equity break-even EBIT Plan and Plan Il break-even EBIT d-1. Plan EPS Plan ll EPS Alloquity EPS C. for an all-equity plan? (Do not round Intermediate calculations.) 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 11? (Do not round Intermediate calculations.) a. Plan EPS Plan II EPS All equity EPS b. Plan and all-equity break-even EBIT C. Plan Il and all-equity break-even EBIT Plan and Plan Il break-even EBIT d-1. Plan I EPS Plan EPS All equity EPS d-2. Plan and all-equity break-even EBIT Plan II and all-equity break-even EBIT d-3. Plan l'and Plan 11 break-even EBIT

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