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 $8.25 million in debt outstanding. The interest rate on the debt is 11 percent, and there are no taxes.

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.)

EPS Plan I $ 2.95

Plan II $ 2.61

b. Assume that EBIT is $3.7 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.)

EPS Plan I $ 4.97

Plan II $ 5.64

c. What is the break-even EBIT?

I ALREADY HAVE PART A & B AND THEY ARE CORRECT I JUST NEED THE ANSWER TO PART C.