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Silverton Co. is comparing two different capital structures. Plan I would result in 11,000 shares of stock and $370,000 in debt. Plan II would result

Silverton Co. is comparing two different capital structures. Plan I would result in 11,000 shares of stock and $370,000 in debt. Plan II would result in 12,100 shares of stock and $329,300 in debt. The interest rate on the debt is 10 percent. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $54,700. The all-equity plan would result in 21,000 shares of stock outstanding. Compute the EPS for each plan.

d. Assume the corporate tax rate is 30 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 II $
All-equity plan $

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