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 195,000 shares of stock outstanding. Under Plan II, there would be 145,000 shares of stock outstanding and $2.1 million in debt outstanding. The interest rate on the debt is 8 percent and there are no taxes. a. If EBIT is $550,000, what is the EPS for each plan?

		EPS
Plan I	$
Plan II	$

b. If EBIT is $800,000, what is the EPS for each plan?

		EPS
Plan I	$
Plan II	$

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