Loreal ive: is comparing two different capital structures: An all-equity plan (Plan I) and a levered plan (Plan I) . Under Plan I the company would have 37,500 shares of stock outstanding. Under Plan I, there would be 25,000 shares of stock outstanding and $600,000 in debt outstanding. The interest rate on the debt is 5 percent, and there are no taxes. a) calculate earnings per share under both plans assuming that the EBIT is 150,000

b)based on your calculations which plan will result in higher EPS?

C) explain why EPS pf levered plan is different from the EPS of unlevered plan

d) what is the break even EBIT for these companies