bvc Company has no debt and 1 Million shares @ $50/sh and is considering a $4 Million expansion by issuing perpetual debt with an 6% interest rate. Calculate the EPS for the expanded firm at EBIT of $900K p.a. and then compare it to the EPS of an all equity financed expansion (assuming new equity is issued @ $10/sh.) Use a graph of EPS vs. EBIT to illustrate your answer, calculate the intercepts and indifference point.