Reliable Gearing currently is all-equity-financed. It has 12,000 shares of equity outstanding, selling at $70 a share. The firm is considering a capital restructuring. The low-debt plan calls for a debt issue of $161,000 with the proceeds used to buy back stock. The high-debt plan would exchange $455,000 of debt for equity. The debt will pay an interest rate of 10%. The firm pays no taxes.

Please help me to solve these questions.

a. What will be the debt - to - equity ratio after each possible restructuring ? ( Round your answers to 2 decimal places . ) DIE (low) DIE (high ) b . If earnings before interest and tax ( EBIT ; will be either $70, 000 0r $ 450, 000 , what will earnings per share be for each financing mix for both possible values of EBIT? ( Round your answers to the nearest cent . ) EPS ($70, 000; low - debt plan ; $ EPS ($450, 000; low _debt plan ; $ Expected EPS ( low - debt plan ) If both scenarios are equally likely , what is expected ( that is , average ; EPS under each financing mix ?" ( Round your answers to the nearest cent . ) ERS ($70, 000; high - debt plan ;\\ $ EPS ($450, 000; high - debt plan ;\\ Expected EPS ( high - debt plan ;\\ $C. Suppose that EBIT is $84, 000. What is EPS under each financing mix ? ( Round your answers to the nearest cent . ! EPS ( low_debt plan; EPS ( high - debt plan)