Kolby Corp. is comparing two different capital structures. Plan I would result in 9,000 shares of stock and $60,000 in debt. Plan II would result in 5,000 shares of stock and $140,000 in debt. The interest rate on the debt is 10 percent.

a.Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $60,000. The all-equity plan would result in 12,000 shares of stock outstanding. What is the EPS for each of these plans?(Do not round intermediate calculations and round your final 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 intermediate calculations.)

c.Ignoring taxes, at what level of EBITwill EPS be identical for Plans I and II?(Do not round intermediate calculations.)