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Kyle 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

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Kyle 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 745,000 shares of stock outstanding. Under Plan II, there would be 495,000 shares of stock outstanding and $825 milion in debt outstanding. The interest rate on the debt is 11 percent, and there are no toxes. a. Assume that EBIT is $2.2 million. Compute the EPS for both Plan I and Plan II. (Do not round intermediate calculations and round your answers to 2 decimal places, 32.16.) b. Assume that EBIT is $3.7 million. Compute the EPS for both Pian I and Plan II. (Do not round intermediate calculations and round your answers to 2 decimal places, 32.16.)

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