I HAVE THE FOLLOWING QUESTION AND ANSWER BUT AM REALLY LOST ON THE STEPS TO GET THE ANSWER, IF SOMEONE COULD BREAK IT DOWN STEP BY STEP.

Blue Inc is comparing two different capital structures. Plan I is an all equity plan and Plan II is a levered plan. Under Plan I Blue Inc would have 450,000 shares outstanding. Under Plan II there would be 180,000 shares outstanding and 4,500,000 in debt. The interest rate on the debt would be 8%. The tax rate would be 30%. What would be the EPS at the break-even level of EBIT

a) $1.33

b) $1.50

c) $0.93

d) $1.11

e) None of the above

X/450K = (X ($4.5M*.08*.7))/180K

X = $420,000

EPS = X/450,000 = .933