Problem 4: A company is comparing two different capital structures, Plan I will result in 12,700 shares of stock and $109.250 in debt. Plan II would result in 9,800 shares of stock and S247000 in debt. The interest rate on the debt is 10 percent. (a) Ignoring taxes, compare both of the plans to an all-equity plan assuming that EBIT will be $79,000. The all-equity plan would result in 15,000 shares of stock outstanding. Which of the three plans has the highest EPS? The lowest? (b) What is the break-even levels of EBIT for each plan as compared to that for all-equity plan? Is one higher than the other? Why