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Kuchar Corporation is comparing two different capital structures, an all - equity plan ( Plan I ) and a levered plan ( Plan II )
Kuchar Corporation is comparing two different capital structures, an allequity plan Plan
I and a levered plan Plan II Under Plan I, the company would have shares of
stock outstanding. Under Plan II there would be shares of stock outstanding
and $ million in debt outstanding. The interest rate on the debt is percent and ther
are no taxes.
a If EBIT is $ what is the EPS for each plan? Do not round intermediate
calculations and round your answers to decimal places, eg
b If EBIT is $ what is the EPS for each plan? Do not round intermediate
calculations and round your answers to decimal places, eg
c What is the breakeven EBIT? Do not round intermediate calculations and enter
your answer in dollars, not millions of dollars, rounded to the nearest whole
number, eg
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