Vanier Corporation is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan I

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Vanier 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 195,000 shares of stock
outstanding. Under Plan II, there would be 140,000 shares of stock
outstanding and $1,787,500 in debt outstanding. The interest rate
on the debt is 8%, and there are no taxes.
a. If EBIT is $400,000, what is the EPS
for each plan? (Round the final answers to 2 decimal
places. Omit $ sign in your response.)
b. If EBIT is $600,000, what is the EPS
for each plan? (Round the final answers to 2 decimal
places. Omit $ sign in your response.)
c. What is the break-even
EBIT? (Do not round intermediate calculations. Omit $
sign in your response.)
Break-even
EBIT $