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

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Hale Corporation is comparing two different capital structures, an all-equity plan (Plan and a levered plan (Plan II). Under Plan I, the company would have 175,000 shares of stock outstanding. Under Plan II, there would be 125,000 shares of stock outstanding and $17 million in debt outstanding. The interest rate on the debt is 5 percent and there are no taxes G. IT EBIT is $325,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EPS Plan I Plan II $ $ b. I 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.) Plan I Plan II $ s EPS 3.29 392 c. What is the break even EBIT? (Do not round Intermediate calculations. Enter your answer in dollars, not millions of dollars, e... 1,234,567.) Break-even EBIT $ 700000

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