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Silverton Co. is comparing two different capital structures. Plan I would result in 10,000 shares of stock and $310,000 in debt. Plan II would result

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Silverton Co. is comparing two different capital structures. Plan I would result in 10,000 shares of stock and $310,000 in debt. Plan II would result in 13,000 shares of stock and $217,000 in debt. The interest rate on the debt is 10 percent. a. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $54,100. The all-equity plan would result in 20,000 shares of stock outstanding. Compute the EPS for each plan. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EPS Plan I Plan II All-equity plan b. In part (a), what is the break-even level of EBIT for Plan I as compared to that for an all-equity plan? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32) EBIT In part (a), what is the break-even level of EBIT for Plan II as compared to that for an all-equity plan? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g, 32) EBIT c. Ignoring taxes, at what level of EBIT will EPS be identical for Plans I and Il? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g, 32.) EBIT d. Assume the corporate tax rate is 34 percent. Compute the EPS for each plan. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EPS Plan I Plan Il All-equity plan What is the break-even level of EBIT for Plan I as compared to that for an all-equity plan? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g 32.) EBIT What is the break-even level of EBIT for Plan Il as compared to that for an all-equity plan? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g, 32.) EBIT At what level of EBIT will EPS be identical for Plans I and Il? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g, 32.) EBIT

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