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Honeycutt Co. is comparing two different capital structures. Plan I would result in 27,000 shares of stock and $87,000 in debt. Plan II would result

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Honeycutt Co. is comparing two different capital structures. Plan I would result in 27,000 shares of stock and $87,000 in debt. Plan II would result in 21,000 shares of stock and $261,000 in debt. The interest rate on the debt is 7 percent. a. Ignoring taxes, compare both of these plans to an allequity plan assuming that EBIT will be $100,000. The allequity plan would result in 30,000 shares of stock outstanding. What is the EPS for each of these plans? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. In part (a), what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? (Do not round intermedlate calculations.) c. Ignoring taxes, at what level of EBIT will EPS be identical for Plans I and II? (Po not round intermediate calculations.) d-1. Assuming that the corporate tax rate is 23 percent, what is the EPS of the firm? (Do not round intermedlate calculations and round your answers to 2 decimat places, e.9. 32.16.) d-2. Assuming that the corporate tax rate is 23 percent, what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? (Bo not round Intermedlate calculations.) d-3. Assuming that the corporate tax rate is 23 percent, when will EPS be identical for Plans I and II? (Do not round intermedlate calculations.) \begin{tabular}{|l|l|} \hline a. Plan I EPS \\ \hline & Plan II EPS \\ \hline & All equily EPS \\ \hline b. & Plan I and all-equity break-even EBIT \\ \hline c. & Plan II and all-equity break-even EBIT \\ \hline & Plan I and Plan II break-even EBIT \\ \hline d-1. & Plan I EPS \\ \hline & Plan II EPS \\ \hline & All equity EPS \\ \hline d-2. & Plan I and all-equity break-even EBIT \\ \hline & Plan II and all-equity break-even EBIT \\ \hline d-3. & Plan I and Plan II break-even EBIT \\ \hline \end{tabular}

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