Connect 90% Q Search Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not Indicate complet Reliable Gearing currently is all-equity-financed. It has 22,000 shares of equity outstanding, selling at $100 a share. The firm is considering a capital restructuring. The low-debt plan calls for a debt issue of $320,000 with the proceeds used to buy back stock The high-debt plan would exchange $520,000 of debt for equity. The debt will pay an interest rate of 10%. The firm pays no taxes. a. What will be the debt-to-equity ratio if it borrows $320,000? (Round your answer to 2 decimal places.) Answer is complete and correct. 0.17 ratio b. If earnings before interest and tax (EBIT) are $230,000, what wil be carnings per share (EPS) if Reliable borrows $320,0007 (Round your answer to 2 decimal places.) O Answer is not comp te. c. What will EPS be if it borrows $520,000? (Round your answer to 2 decimal places.) Answer is not complete. EPS Prev 1 of 5