Kolby Corp. is comparing 3 capital structures per below I=10%

Plan 1 1,300 shares of stock $80,640 in debt

Plan 2 2,900 shares of stock $19,200 in debt

Plan 3 3,400 shares of stock 0 debt

a.Ignoring taxes, compare these plans. Which has highest EPS? Lowest?

	Option 1	Option 2	Option 3
EBIT	10,500	10,500	10,500
Interest
NI
EPS

Now accounting for taxes, as a shareholder which of these options would you prefer if you were risk-averse?

	1	2	3
EBIT	10,500	10,500	10,500
Interest
EBT
Taxes
NI
EPS