Three recent graduates of the computer science program at the University of Tennessee are forming a company that will write and distribute new application software for the iPhone. Initially, the corporation will operate in the southern region of Tennessee. Georgia, North Carolina, and South Carolina, A small group of private investors in the Atlanta. Georgia area is interested in financing the company and two financing plans have been put forth for consideration: The first (Plan A) is an all-common-equity capital structure. $2.1 million dollars would be raised by selling common stock at $10 per common share, Plan B would involve the use of financial leverage. $1.2 million dollars would be raised by selling bonds with an effective interest rate of 11.4 percent (per annum), and the remaining $0.9 million would be raised by selling common stock al the $10 price per share. The use of financial leverage is considered to be a permanent part of the firm's capitalization, so no fixed maturity date is needed for the analysis. A 30 percent tax rate is deemed appropriate for the analysis. a. Find the EBIT indifference level associated with the two financing plans. b. A detailed financial analysis of the firm's prospects suggests that the long-term EBIT will be above $345,000 annually, Taking;his into consideration, which will generate the higher EPS? a. The EBIT indifference level associated with the two financing plans is $ ____. b. Using EBIT of S345.000. complete the segment of the income statement for Plan A below: Using EBIT of $345,000. complete the segment of the income statement for Plan B below: Plan (1) ____ will generate the higher EPS, (Select from the drop-down menu.)