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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 775,000 shares of stock outstanding. Under Plan III, there would be 525,000 shares of stock outstanding and $9.75 million in debt outstanding. The interest rate on the debit is 7 percent, and there are no taxes. a. Assume that EBIT is $2.8 million. Compute the EPs for both Plan I and Plan II. b. Assume that EB IT is $3.3 million. Compute the EPs for both Plan I and Plan. II c. What is the break-even EBIT

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