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Acme Industries presently has $3.5 million dollars (market value) in debt outstanding bearing a pre-tax interest rate of 8 percent. Also, the company currently has 100,000 shares of common stock outstanding, with a market value of $20 per share. Thus the market value of all the shares is $2,000,000 ($20/share x 100,000 shares). Acme wishes to finance a $4 million expansion program and is considering only these two alternatives: Plan (1) finance the entire expansion with additional debt at 10 percent pre-tax interest or Plan (2) finance the entire expansion with the sale of additional common stock shares at $20 per share. The firm's tax rate is T = 40 percent. Assume that, in making the choice between these two alternatives, the goal is to choose the plan that offers the highest EPS. Also, assume that, based on historical records, you are quite confident that EBIT -N (MEBIT = $750,000, OEBIT =$100,000). Which plan would you recommend? Answer this question by computing the probability that the debt plan (plan 1) is best. (Hint: Step 1 is to write the equations for plan 1 and plan 2, based on the information provided in the problem, and then determine the crossover value of EBIT (EBIT*). You can