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DAR Corporation is comparing two different capital structures: an all equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company

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DAR Corporation is comparing two different capital structures: an all equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 170, 000 shares of stock outstanding Under Plan II, there would be 120 000 shares of stock outstanding and $2.4 million in debt outstanding. The interest rate on the debt is 7 percent, and there are no taxes. a. If EBIT is $450, 000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. If EBIT is $700, 000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the break-even EBIT? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1, 234, 567.) Break-even EBIT $

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