Vapid Motors Inc. is currently all-equity financed with 1,391,369 shares outstanding. Vapid wants to raise $3.5M in new funds and is considering two financing options. Option A is all equity. Vapid will issue new shares at $7 per share. Option B is debt financing. Vapid will borrow the money at an interest rate of 12.4%. The tax rate is 49%. Use this information to answer the following questions. Part 1 What is the EBIT-EPS indifference level? Responses $2.04M $2.04M $2.14M $2.14M $2.24M $2.24M $1.64M $1.64M Question 2 Part 2 If Vapid expects an EBIT of $2.3M, which capital structure should it select to maximize EPS? Responses equity equity debt