Cain Auto Supplies and Able Auto Parts are competitors in the aftermarket for auto supplies. The separate capital structures for Cain and Able are presented below. Cain Able Debt @ $10\%$ $$140,000$ Debt @ $10\%$ $$280,000$ Common stock $280,000$ Common stock $140,000$ Total $$420,000$ Total $$420,000$ Common shares $28,000$ Common shares $14,000$ a$.$ Compute EPS if EBIT are $$28,000,$ $$42,000,$ and $$59,000($assume a $30$ percent tax rate$).($Round the final answers to $2$ decimal places. Do not leave any empty spaces; input a $0$ wherever it is required.$)$ CainAble EPS at $$28,000$$ $ EPS at $$42,000$$ $ EPS at $$59,000$$ $ b$.$ What is the relationship between EPS and level of EBIT? $1.$ Earnings before interest and taxes is less than cost of debt.$($Click to select$)2.$ Earnings before interest and taxes equals cost of debt.$($Click to select$)3.$ Earnings before interest and taxes is greater than cost of debt.$($Click to select$)$ c$.$ If the cost of debt went up to $12$ percent and all other factors remained equal, what would be the indifference point for EBIT? Break$-$even level $