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Dickson Corporation is comparing two different capital structures. Plan I would result in 37,000 shares of stock and $105,000 in debt. Plan II would result

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Dickson Corporation is comparing two different capital structures. Plan I would result in 37,000 shares of stock and $105,000 in debt. Plan II would result in 31,000 shares of stock and $315,000 in debt. The interest rate on the debt is 5 percent. a. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $150,000. The all-equity plan would result in 40,000 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.) 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 23 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 23 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 23 percent, when will EPS be identical for Plans I and II? (Do not round intermediate calculations.) \begin{tabular}{|l|} \hline a. Plan I EPS \\ \hline a. Plan II EPS \\ \hline a. All-equity EPS \\ \hline b. Plan I and all-equity break-even EBIT \\ \hline b. Plan II and all-equity break-even EBIT \\ \hline c. Plan I and Plan II break-even EBIT \\ \hline d-1. Plan I EPS \\ \hline d-1. Plan II EPS \\ \hline d-1. All-equity EPS \\ \hline d-2. Plan I and all-equity break-even EBIT \\ \hline d-2. Plan II and all-equity break-even EBIT \\ \hline d-3. Plan I and Plan II break-even EBIT \\ \hline \end{tabular}

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