Let's say Jet Blue Airlines needs to raise $1 billion to expand into new countries and cities. After completing the EPS/EBIT chart, determine whetherJet Blueshould use all debt, all stock, or a 70% Stock-30% debt combination financing plan to implement this market-development strategy.

Assume the following:

• Amount needed=$1 billion
• Tax Rate=38%
• Interest Rate=5%
• Stock Price=$7.20 per share
• EBIT Range is between $300 billion and $800 billion.
• Common Stock Shares Outstanding=770 million

Develop an EPS/EBIT chart to reflect your analysis.