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Kolby Corp. is comparing two different capital structures. Plan I would result in 31,000 shares of stock and $93,000 in debt. Plan Il would result

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Kolby Corp. is comparing two different capital structures. Plan I would result in 31,000 shares of stock and $93,000 in debt. Plan Il would result in 25,000 shares of stock and $279,000 in debt. The interest rate on the debt is 7 percent Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $120,000. The all-equity plan would result in 34,000 shares of stock outstanding. What is the EPS for each of these plans? (Do not round intermediate calculations and round your 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 a. all-equity plan? (Do not round intermediate calculations.) Ignoring taxes, at what level of EBIT will EPS be identical for Plans I and II? (Do not round intermediate calculations.) d-1. Assuming that the corporate tax rate is 22 percent, what is the EPS for each of the plans? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) d-2. Assuming that the corporate tax rate is 22 percent, 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.) d-3. Assuming that the corporate tax rate is 22 percent, when will EPS be identical for Plans I and II? (Do not round intermediate calculations.) C. Plan EPS . Plan II EPS All equity EPS Plan I and all-equity break-even EBIT . Plan Il and all-equity break-even EBIT Plan I and Plan II break-even EBIT C. d-1. Plan I EPS Plan II EPS All equity EPS d-2. Plan I and all-equity break-even EBIT Plan Il and all-equity break-even EBIT d-3. Plan I and Plan II break-even EBIT

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