Bellwood Corp. is comparing two different capital structures.Plan I would result in 31,000 shares of stock and $93,000 in debt.Plan II would result in 25,000 shares of stock and $279,000 indebt. The interest rate on the debt is 7 percent.

  

a.	Ignoring taxes, compare both of these plans to an all-equityplan assuming that EBIT will be $120,000. The all-equity plan wouldresult in 34,000 shares of stock outstanding. What is the EPS foreach of these plans? (Do not round intermediatecalculations and round your answers to 2 decimal places, e.g.,32.16.)
b.	In part (a), what are the break-even levels of EBIT for eachplan as compared to that for an all-equity plan? (Do notround intermediate calculations.)
c.	Ignoring taxes, at what level of EBIT will EPS be identical forPlans I and II? (Do not round intermediatecalculations.)
d-1.	Assuming that the corporate tax rate is 22 percent, what is theEPS of the firm? (Do not round intermediate calculationsand round your answers to 2 decimal places, e.g.,32.16.)
d-2.	Assuming that the corporate tax rate is 22 percent, what arethe break-even levels of EBIT for each plan as compared to that foran all-equity plan? (Do not round intermediatecalculations.)
d-3.	Assuming that the corporate tax rate is 22 percent, when willEPS be identical for Plans I and II? (Do not roundintermediate calculations.)