(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. These stores would be located in Dallas, Houston, and San Antonio To finance the new venture two plans have been proposed Plan A is an all.common-equity structure in which 52.1 million dollars would be raised by selling 90,000 shares of common stock Plan B would involve issuing $1 1 million in long-term bonds with an effective interest rate of 12 3 percent plus another $10 million would be raised by soling 45,000 shares of common stock. The debt funds raised under Plan B have no fixed maturity date, in that the amount of financial leverage is considered a permanent part of the firm's capital structura Abe and his partners plan to use a 35 percent tax rate in their analysis, and they have hired you on a consulting basis to do the following Find the EBIT indifference lovel associated with the two financing plans b. Prepare a proforma income statement for the EBIT fevel solved for in part a that shows that EPS will be the same rogadies whether Plan A or B is chosen a. The eBir indifference level associated with the two financing plans is 3 (Round to the nearest dotar)