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Bella Corporation is comparing two different capital structures, Plan I would result in 12,700 shares of stock and C109,250 in debt. Plan II would result in 9,800 shares of stock and C247,000 in debt. The interest rate on the debt is 10 percent. The corporate tax rate is 21 percent Instructions: 1. Compare EPS of plans and il to an all-equity plan assuming that EBIT will be c79,000. The all-equity plan would result in 15,000 shares of stock outstanding Which of the three plans has the highest EPS? The lowest? (15 points) 2. Explain the effect of financial leverage. (5 points)