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d ces Honeycutt Co. is comparing two different capital structures. Plan I would result in 29,000 shares of stock and $90,000 in debt. Plan

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d ces Honeycutt Co. is comparing two different capital structures. Plan I would result in 29,000 shares of stock and $90,000 in debt. Plan II would result in 23,000 shares of stock and $270,000 in debt. The interest rate on the debt is 5 percent. a. b. C. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $110,000. The all-equity plan would result in 32,000 shares of stock outstanding. What is the EPS for each of these plans? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) In part (a), what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? (Do not round intermediate calculations.) Ignoring taxes, at what level of EBIT will EPS be identical for Plans I and II? (Do not round intermediate calculations.) d-1. Assuming that the corporate tax rate is 25 percent, what is the EPS of the firm? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) d-2. Assuming that the corporate tax rate is 25 percent, what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? (Do not round intermediate calculations.) d-3. Assuming that the corporate tax rate is 25 percent, when will EPS be identical for Plans I and II? (Do not round intermediate calculations.) a. Plan I EPS Plan II EPS All equity EPS b. Plan I and all-equity break-even EBIT C. Plan II and all-equity break-even EBIT Plan I and Plan II break-even EBIT d-1. Plan | EPS Plan II EPS All equity EPS

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