How did they get 69600 for part B) ?

1. Des Chatels Corp. is comparing two different capital structures. Plan would result in 13,000 shares of stock and $130,500 in debt, the debt is 10%. Plan II would result in 10,400 shares of stock and $243,600 in debt. The interest rate on the debt is 10% Which of the three plans has the highest EPS? Why? a. Ignoring taxes, compare both of these plans to all-equity plan assuming that EBIT will be $56,000. The all-equity plan would result in 16,000 share of stock The income statement for each capitalization plan is II All-equity $56,000 $56,000 $56,000 EBIT Interest NI EPS 13050 24360 $42.95031640 $56,000 $3.30 $3.04 $3.50 All-equity has the highest EPS. Plan II has the lowest EPS b. In part (a) what are the break-even levels of EBIT for each plan as compared to that for all-equity plan? For plan I EBIT/16000 (EBIT-0.1 130500)/13000 EBIT-69600 For plan II EBIT/16000=(EBIT-0.1*243600)/10400 EBIT: 69600 The break-even EBITs are the same