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Business, 03.04.2020 22:32 bandchick527

Rise Against Corporation is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 160,000 shares of stock outstanding. Under Plan II, there would be 110,000 shares of stock outstanding and $1.40 million in debt outstanding. The interest rate on the debt is 7 percent, and there are no taxesa. If EBIT is $375,000, what is the EPS for each plan?
b. If EBIT is $625,000, what is the EPS for each plan?
c. What is the break-even EBIT?

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