Sillery Manufacturing is comparing two different capital structures: an all-equity plan (Plan A) and a levered plan (Plan B). Under Plan A, the company would have 195,000 shares of stock outstanding at current market price of $15 per share. Under Plan B, there would be $1,787,505 in debt outstanding and the remaining would be equity financing. The interest rate on the debt is 8 percent, and there are no taxes. a. If EBIT is $400,000, which plan will result in the higher EPS and higher ROE? b. If EBIT is $600,000, which plan will result in the higher EPS and higher ROE? c. If EBIT increases from $400,000 to $600,000, what is the degree of financial leverage (DFL) under Plan A and Plan B? d. What is the break-even EBIT? e. Based on your calculations in questions (c) and (d) above, do you still recommend the same plan for capital structure that you have chosen in questions (a) and (b)? Why?