Cooke Co. is comparing two different capital structures. Plan I would result in 8,000 shares of stock and $456,000 in debt. Plan II would result in 13,700 shares of stock and $239,400 in debt. The interest rate on the debt is 11 percent. Requirement 1: Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $54,800. The all-equity plan would result in 20,000 shares of stock outstanding. Compute the EPS for each plan. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

EPS Plan I $ Plan II $ All-equity plan $ Requirement 2: (a) In Requirement (1), what is the break-even level of EBIT for Plan I as compared to that for an all-equity plan? (Do not round intermediate calculations.)

EBIT $ (b) In Requirement (1), what is the break-even level of EBIT for Plan II as compared to that for an all-equity plan? (Do not round intermediate calculations.)

EBIT $ Requirement 3: Ignoring taxes, at what level of EBIT will EPS be identical for Plans I and II? (Do not round intermediate calculations.) EBIT $

Requirement 4: Assume the corporate tax rate is 32 percent.

(a) Compute the EPS for each plan. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) EPS Plan I $ Plan II $ All-equity plan $

(b) What is the break-even level of EBIT for Plan I as compared to that for an all-equity plan? (Do not round intermediate calculations.) EBIT $ (

c) What is the break-even level of EBIT for Plan II as compared to that for an all-equity plan? (Do not round intermediate calculations.) EBIT $ (

d) At what level of EBIT will EPS be identical for Plans I and II? (Do not round intermediate calculations.) EBIT $

Can you please focus on Requirement 4 and how to solve for the answer with a tax rate of 32%. Thank you!

Siverton Co. is comparing two different capital structures. Plan I would result in 8.000 shares of slack and S458,000 in debt. Plan I would result in 13,700 shares of slock and $239,400 in debl. The interest rate on the debt is 11 percent. a. Ignoring taxes, compare bath of these plans to an all-equity plan assuming that EBIT will be $54,800. The all-equity plan would result in 20.000 shares of stock outstanding. Compute the EPS for each plan. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) Plan 11 All-equily Dan b. In pari (a), what is the break-ever level of EDIT for Plan las compared to that for an all-equity plan? (Do not round intermediate calculations and round your answer to the nearest whole number, ... 32.) EBIT $ 8360 In parta), what is the break-even level of EBIT for Plan las compared to that for an all-aquity plan? (Do not round Intermediate calculations and round your answer to the nearest whole number, c-g-32.) EBIT $ 33600 c. Ignoring taxes, at what level of EBIT will EPS ba identical for Plans I and II? Do not round Intermediate calculations and round your answer to the nearest whole number, 9... 32.) EHIT $ 3600 d. Assume the corporate tax rate is 32 percent. Compule the EPS for each plan. (Do not round intermediate calculations and round your answers to 2 decimal places, e... 32.16.) Plan 11 All-equity plan What is the break-oven level of EBIT for Plan las compared to that for an al-cquity plan? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g., 32.) EDIT 5 What is the break-even level of EBIT for Plan Il as compared to that for an all-equity plan? (Do not round Intermediate calculations and round your answer to the nearest whole number, 4... 32.) EBIT $ Al what level of EBIT wil EPS be identical for Plans I and II? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. EBIT $