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Destin Corp is comparing two different capital structures Plan I would result in 10.000 shares of stock and $90,000 in debt Plan I would result in 7.600 shares of stock and 5198,000 in debt. The interest rate on the debt is 10 percent a. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $48.000 The all-equity plan would result in 12,000 shares of stock outstanding. What is the EPS for each of these plans? (Round your answers to 2 decimal places. (e.g., 32.16)) Plani Plan 11 All equity b. In part (a). What are the break-even levels of EBIT for each plan as compared to that for an all equity plan? Plan I and all-equity Plan Il and all-equity c. Ignoring taxes, at what level of EBIT will EPS be identical for Plans I and II? EBIT d.1 Assuming that the corporate tax rate is 40 percent, what is the EPS of the firm? (Round your answers to 2 decimal places.le... 32.16) Plan! Plan il Alquilty d? Assuring that the corporate tax rate is 40 perc 2.2 Assuming that the corporate tax rate is 40 percent, what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? EBIT Plan and all-equity Plan II and all-equity 3 Assuming that the corporate tax rate is 40 percent, when will EPS be identical for Plans and 11? References eBook & Resources

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