Rellable Gearing currenty is all-equity-financed. It has 5,000 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 $38,500 with the proceeds used to buy back stock. The high-debt plan would exchange $175,000 of debt for equity. The debt will pay an interest rate of 10\%. The firm pays no taxes. a. What will be the debt-to-equity ratio after each possible restructuting? (Round your answers to 2 decimal places.) b1. If earnings before interest and tax (EBIT) will be elther $20,000 or $450,000, what will earnings per share be for each financing mix for both possible values of EBIT? (Round your nnswers to the nearest cent.) b2. If both scenarios are equally llkely, what is expected (that Is, average) EPS under each financing mix? (Round your answers to the nearest cent.) b3. Is the high-debt mix preferable? c. Suppose that EBIT is $35,000. What is EPS under each financing mix? (Round your answers to the nearest cent.)