Gail 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 160,000 shares of stock outstanding. Under Plan II, there would be 110,000 shares of stock outstanding and $1.4 million in debt outstanding. The interest rate on the debt is 7 percent, and there are no taxes. If Earnings Before Interest and Taxes (EBIT) is $650,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.) Earnings per share (EPS) are: 12.Under Plan I = $ 13.Under Plan ll = $ 14.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 = $

a. Under Plan I

No debt.

EPS = Earnings / Number of shares

= 650,000 / 160,000

= $4.06 per share

b. Under Plan II

Debt of $1.4 million.

Interest = 7% * 1.4 million

= $98,000

EPS = (650,000 - 98,000) / 110,000 shares

= $5.02 per share

c. Breakeven point.

What amount of Earnings will equate the two plans.

Assume earnings is e.

e / 160,000 = (e - 98,000) / 110,000

e * 110,000 = 160,000 * (e - 98,000)

110,000e = 160,000e - ‭15,680,000,000‬

160,000e - 110,000e = ‭15,680,000,000‬

e = ‭15,680,000,000‬/50,000

e = $‭313,600‬

there is no possible way mgk stands a chance with the greatest white rapper of all time. eminem killshots had more bars than rap devil and the reason mgk is doing all this is cause he not getting attention anymore til the release of rap devil and the disses he is putting on eminem. now rap devil was more fire than killshot so mgk might won the battle with rap devil but eminem won the war with killshot.