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# Kyle Corporation is comparing two different capital structures an allequity plan Plan I and a levered plan Plan II Under Plan I Kyle would have 765000 shares of stock outstanding Under Plan

Kyle Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Kyle would have 765,000 shares of stock outstanding. Under Plan II, there would be 515,000 shares of stock outstanding and \$9.25 million in debt outstanding. The interest rate on the debt is 12 percent, and there are no taxes. Requirement 1: Assume that EBIT is \$2.6 million. Compute the EPS for both Plan I and Plan II. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32 EPS

Plan I \$

Plan II \$

Requirement 2: Assume that EBIT is \$3.1 million. Compute the EPS for both Plan I and Plan II. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

EPS Plan I \$

Plan II \$

Requirement 3: What is the break-even EBIT? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).)

Break-even EBIT \$

ireally need the break even IBT. no other expert has been able to explain this correctly

May 21 2020 View more View Less