(EBIT-EPS analysis)?Abe Forrester and three of his friends from college have interested a group of venture capitalists...

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(EBIT-EPS analysis)?Abe Forrester and three ofhis friends from college have interested a group of venturecapitalists in backing their business idea. The proposed operationwould consist of a series of retail outlets to distribute andservice a full line of vacuum cleaners and accessories. Thesestores would be located in? Dallas, Houston, and San Antonio. Tofinance the new venture two plans have been? proposed:
• Plan A is an? all-common-equity structure in which ?$ 2.3million dollars would be raised by selling 86,000 shares of commonstock.
• Plan B would involve issuing ?$ 1.3 million in? long-termbonds with an effective interest rate of 11.8 percent plus another$ 1.0 million would be raised by selling 43,000 shares of commonstock. The debt funds raised under Plan B have no fixed maturity?date, in that this amount of financial leverage is considered apermanent part of the? firm's capital structure.
Abe and his partners plan to use a 38 percent tax rate in their?analysis, and they have hired you on a consulting basis to do the?following:
(Q) Find the EBIT indifference level associatedwith the two financing plans. (Round to the nearest?dollar.)

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(EBIT-EPS analysis)?Abe Forrester and three ofhis friends from college have interested a group of venturecapitalists in backing their business idea. The proposed operationwould consist of a series of retail outlets to distribute andservice a full line of vacuum cleaners and accessories. Thesestores would be located in? Dallas, Houston, and San Antonio. Tofinance the new venture two plans have been? proposed:• Plan A is an? all-common-equity structure in which ?$ 2.3million dollars would be raised by selling 86,000 shares of commonstock.• Plan B would involve issuing ?$ 1.3 million in? long-termbonds with an effective interest rate of 11.8 percent plus another$ 1.0 million would be raised by selling 43,000 shares of commonstock. The debt funds raised under Plan B have no fixed maturity?date, in that this amount of financial leverage is considered apermanent part of the? firm's capital structure.Abe and his partners plan to use a 38 percent tax rate in their?analysis, and they have hired you on a consulting basis to do the?following:(Q) Find the EBIT indifference level associatedwith the two financing plans. (Round to the nearest?dollar.)