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Business, 03.12.2019 00:31 dchirunga23

Gabe's market is comparing two different capital structures. plan i would result in 11,000 shares of stock and $225,000 in debt. plan ii would result in 14,000 shares of stock and $150,000 in debt. the interest rate on the debt is 8 percent. ignoring taxes, compare both of these plans to an all-equity plan assuming that ebit will be $45,000. the all-equity plan would result in 20,000 shares of stock outstanding. of the three plans, the firm will have the highest eps with and the lowest eps with
1) plan i; plan ii
2) plan i; all-equity plan
3) plan ii; plan i
4) plan ii; all-equity plan
5) all-equity plan; plan i

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