pls just this two
P15-14 (similar to) Question Help (Using EBIT-EPS break-even analysis) Home Depot, Inc. (HD), had 1244 million shares of common stock outstanding in 2016, whereas Lowes Companies, Inc (LOW), had 929 million shares outstanding. Assuming Home Depot's 2016 interest expense is $919 million, Lowes' interest expense is $552 million, and a 38 percent tax rate for both firms, what is their break-even level of operating income , the level of EBIT where EPS is the same for both firms)? The EBIT indifference level is (Round to the nearest dollar) P15-12 (similar to) Question Help k (Related to Checkpoint 15-2) (EBIT-EPS analysis) Abe Forrester and three of his friends from college have interested a group of venture capitalists in backing their business idea. The proposed operation would consist of a series of retail outlets to distribute and service a full line of vacuum cleaners and accessories. The stores would be located in Dalas, Houston, and San Antonio. To finance the new venture two plans have been proposed Plan A is a common equity structure in which $2.1 million dollars would be raised by selling 88,000 shares of common stock ollars would be raised by som sa con honor Plan B would involve issuing $1.4 million in long-term bonds with an effective interest rate of 11.6 percent plus another $0.7 million would be raised by selling 44,000 shares of common stock. The debt funds raised under Plan B have no fixed maturity date, in that this amount of financial leverage is considered a permanent part of the firm's capital structure Abe and his partners plan to use a 40 percent tax rate in their analysis, and they have hired you on a consulting basis to do the following a. Find the EBIT indifference levels wed with the two financing plans b. Prepare a proforma income statement for the EBIT level solved for in part a that shows that EPS will be the same regardless whether Plan A or B is chosen a. The EBIT indifference level associated with the two financing plans is (Round to the nearest dollar)