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University Of Central Florida Operations And Supply Chain Management Assignment Help - Corporate Finance

Question - Destin Corp. is comparing two different capital structures. Plan I would result in 9,000 shares of stock and $60,000 in debt. Plan II would result in 5,000 shares of stock and $140,000 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 $60,000. 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)) EPS Plan I $ Plan II $ 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? EBIT Plan I and all-equity $ Plan II and all-equity $ c. ...Read More

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