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Kuchar Corporation is comparing two different capltal structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would

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Kuchar Corporation is comparing two different capltal structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 160,000 shares of stock outstanding. Under Plan II, there would be 110,000 shares of stock outstanding and \$1.4 million In debt outstanding. The Interest rate on the debt is 7 percent and there are no taxes. a. If EBIT is $400,000, what is the EPS for each plan? (Do not round Intermedlate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. If EBIT is $650,000, what is the EPS for each plan? (Do not round Intermedlate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What Is the break-even EBIT? (Do not round Intermedlate calculations and enter your answer In dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)

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