Business, 05.05.2021 21:00 baileymtamayo

Rise Against Corporation 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 210,000 shares of stock outstanding. Under Plan B, there would be 150,000 shares of stock outstanding and $2.28 million in debt outstanding. The interest rate on the debt is 8%, and there are no taxes. a. If EBIT is $500,000, what is the EPS for each plan? (Round your answers to 2 decimal places.(e. g., 32.16))
EPS
Plan I $
Plan II $
b. If EBIT is $750,000, what is the EPS for each plan? (Round your answers to 2 decimal places.(e. g., 32.16))
EPS
Plan I $
Plan II $
c. What is the break-even EBIT? (Enter your answer in dollars, not millions of dollars, i. e. 1,234,567.)
Break-even EBIT $

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Rise Against Corporation is comparing two different capital structures: an all equity plan (Plan A)...

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