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Foundation, Incorporated, in comparing two different capital structures, an all equity plan (Plan 0 and a levered plan (Plan 10 Under Plan L the
Foundation, Incorporated, in comparing two different capital structures, an all equity plan (Plan 0 and a levered plan (Plan 10 Under Plan L the company would have 170,000 shares of shock outstanding Under Plan it, 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. EENT is $450.000, what is the EPS for each plan? Note: Do not round intermediate calculations and round your answers to 2 decimal places, eg, 32.16. b. If ERIT is $700,000, what is the EPS for each plan? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. What is the break even EBIT? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567 PlanEPS Plan It EPS b. Plan 1EPS Plan EPS Break-evon EBIT
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