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 Debt @10% Common stock Total Common shares Able $140,000 280,000 Debt 10% Common stock $280,000 140,000 $420,000 Total $420,000 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 O wherever it is required.) Cain EPS at $28,000 $ EPS at $42,000 $ EPS at $59,000 $ Able 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) 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.) EPS at $28,000 EPS at $42,000 Cain $ $ Able EPS at $59,00e 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) 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