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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 all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 185,000 shares of stock outstanding. Under Plan II, there would be 135,000 shares of stock outstanding and $1.9 million in debt outstanding. The interest rate on the debt is 7 percent and there are no taxes.
a. If EBIT is $425,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.)
b. If EBIT is $675,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.)
c. What is the break-even EBIT? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g.,1,234,567.)
a.
Plan 1
Plan 2
b.
Plan 1
Plan 2
c. Break-even EBIT

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