show all works

1. Grab Singapore is comparing two different capital structures: an unlevered firm (Plan A) and a levered firm (Plan B). Under Plan A, the company would have total 9 million USD worth assets. On the other hand, under Plan B, Grab wants to include debt their capital structure. There would be $3 million in debt outstanding. The interest rate on the debt is 15 percent. Currently Grab SG's shares are trading @ $30/share in the Singapore stock exchange. Assume there's no tax in either plan. Required: a) What is the break-even EBIT (EBIT/EPS Indifference point)? (4) b) Grab is expecting its EBIT to be roughly $180,000. Based on the break-even EBIT, should they go for plan B (incorporating debt) (1) c) If EBIT were $150,000, what would be the EPS and ROE under Plan A and Plan B? (3) d) If EBIT were $200,000, what would be the EPS and ROE under Plan A and Plan B? (3)