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Kuchar Corporation is comparing two different capital structures, an all - equity plan ( Plan 1 ) and a levered plan ( Plan II )

Kuchar Corporation is comparing two different capital structures, an all-equity plan (Plan 1) and a levered plan (Plan II). Under Plan I, the company would have 170,000 shares of stock outstanding. Under Plan II, there would be 120,000 shares of stock outstanding and $2.4 million in debt outstanding. The interest rate on the debt is 7 percent and there are no taxes.
a. If EBIT is $450,000, 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 $700,000, 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.)
\table[[,,],[a.,Plan I,],[,Plan II,],[b.,Plan I I,],[,Plan II,],[c.,Break-even EBIT,]]
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