Hale Corporation 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 170,000 shares of stock outstanding. Under Plan II, 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.If EBIT is $450,000, 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.If EBIT is $700,000, 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$

c.What is the break-even EBIT?(Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Break-even EBIT$