Dickson Corporation is comparing two different capital structures. Plan I would result in

$12,700$ shares of stock and $$100,050$ in debt. Plan II would result in $9,800$ shares of

stock and $$226,200$ in debt. The interest rate on the debt is $10$ percent.

a$.$ Ignoring taxes, compare both of these plans to an all$-$equity plan assuming that EBIT

will be $$70,000.$ The all$-$equity plan would result in $15,000$ 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$.,32\mathrm{.}16.)$

b$.$ 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.$)$

c$.$ 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 $21$ percent, what is the EPS of the firm? $($Do

not round intermediate calculations and round your answers to $2$ decimal places,

e$.$g$.,32\mathrm{.}16.)$

d$-2.$ Assuming that the corporate tax rate is $21$ 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 $21$ percent, when will EPS be identical for

Plans I and II$?($Do not round intermediate calculations.$)$