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Round Hammer is comparing two different capital structures: An all-equity plan (Plan 1) and a levered plan (Plan II). Under Plan 1, the company would

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Round Hammer is comparing two different capital structures: An all-equity plan (Plan 1) and a levered plan (Plan II). Under Plan 1, the company would have 185,000 shares of stock outstanding. Under Plan II, there would be 135,000 shares of stock outstanding and $2.7 million in debt outstanding. The interest rate on the debt is 5 percent, and there are no taxes. a. If EBIT is $375,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. If EBIT is $625,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the break-even EBIT? (Do not round intermediate calculations. Enter your answer in dollars, not millions dollars, e.g., 1,234,567.) a. Plan I EPS Plan || EPS b. Plan I EPS Plan II EPS c. Break-even EBIT

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