Cain Able Debt 8% Common stock $150,000 300,000 Debt 8% Common stock Total $450,000 Total Common shares 30,000 Common shares $300,000 150,000 $450,000 15,000 Help Save & Exit a. Compute EPS if EBIT are $30,000, $36,000, and $60,000 (assume a 10 percent tax rate) (Round the final answers to 2 decimal places. Do not leave any empty spaces; input a 0 wherever it is required.) EPS at $30,000 EPS at $36,000 EPS at $60,000 Cain Able $ $ $ b. What is the relationship between EPS and level of EBIT? 1. Earnings before interest and taxes is less than cost of debt. 2. Earnings before interest and taxes equals cost of debt. 3. Earnings before interest and taxes is greater than cost of debt. (Click to select) (Click to select) (Click to select) v v c. If the cost of debt went up to 10 percent and all other factors remained equal, what would be the indifference point for EBIT? Break-even level