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DAR Corporation is comparing two different capital structures: an all-equity plan (Plan 1) and a levered plan (Plan II). Under Plan , the company would

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DAR Corporation is comparing two different capital structures: an all-equity plan (Plan 1) and a levered plan (Plan II). Under Plan , the company would have 180,000 shares of stock outstanding. Under Plan II, there would be 130,000 shares of stock outstanding and $2.6 million in debt outstanding. The interest rate on the debt is 8 percent annually, and there are no taxes. a. If EBIT is $575,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) ok ences Plan Plan 11 EPS S $ 3.19 2.04 b. If EBIT is $825.000. what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Plan 1 Plan 11 EPS S 4.58 $ 3.43 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 $ 143800

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