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Blue Stripes Co. is comparing two different capital structures. Plan I would result in 8,700 shares of stock and $399,000 in debt. Plan II would

Blue Stripes Co. is comparing two different capital structures. Plan I would result in 8,700 shares of stock and $399,000 in debt. Plan II would result in 12,500 shares of stock and $239,400 in debt. The interest rate on the debt is 11 percent. Requirement 1: Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $53,900. The all-equity plan would result in 18,200 shares of stock outstanding. Compute the EPS for each plan. (Do not include the dollar signs ($). Round your answers to 2 decimal places (e.g., 32.16).) Find EPS Plan I $ Plan II $ All-equity plan $ Requirement 2: (a) In req. (1), what is the break-even level of EBIT for Plan I as compared to that for an all-equity plan? (Do not include the dollar sign ($).) EBIT $ (b) In req. (1), what is the break-even level of EBIT for Plan II as compared to that for an all-equity plan? (Do not include the dollar sign ($).) EBIT $ Requirement 3: Ignoring taxes, at what level of EBIT will EPS be identical for Plans I and II? (Do not include the dollar sign ($).) EBIT $

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