Foundation, Inc., 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 $145,000$ shares of stock outstanding. Under

Plan II$,$ there would be $125,000$ shares of stock outstanding and

$$716,000$ in debt outstanding. The interest rate on the debt is $8$

percent, and there are no taxes.

a$.$ If EBIT is $$300,000,$ which plan will result in the higher EPS?

b$.$ If EBIT is $$600,000,$ which plan will result in the higher EPS?

c$.$ What is the break$-$even EBIT?

Input Area:

$($Use cells A$6$ to B$13$ from the given information to complete this question.$)$

Output Area: