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Byrd Corporation is comparing two different capital structures, an all - equity plan ( Plan I ) and a levered plan ( Plan II )
Byrd Corporation is comparing two different capital structures, an allequity plan Plan I and a levered plan Plan II Under Plan I, the company would have shares of stock outstanding. Under Plan II there would be shares of stock outstanding and $ million in debt outstanding. The interest rate on the debt is percent and there are no taxes.
a If EBIT is $ what is the EPS for each plan? Do not round intermediate calculations and round your answers to decimal places, eg
b If EBIT is $ what is the EPS for each plan? Do not round intermediate calculations and round your answers to decimal places, eg
c What is the breakeven EBIT? Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, eg
tableaPlan I,Plan IIbPlan I,Plan IIcBreakeven EBIT,
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