+1 4853618276 support@regentessays.com

Problem 16-4 Break-Even EBIT,Rolston Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Rolston would have 130,500 shares of stock outstanding. Under Plan II, there would be 87,000 shares of stock outstanding and $1.305 million in debt outstanding. The interest rate on the debt is 10 percent, and there are no taxes.,,Requirement 1:,,If EBIT is $235,000, calculate the EPS for each plan. (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16)), , Earnings per share under plan I $ , Earnings per share under plan II $ ,,Requirement 2:,,If EBIT is $1,057,000, calculate the EPS for each plan. (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16)), , Earnings per share under plan I $ , Earnings per share under plan II $ , ,Requirement 3:,Calculate the break-even EBIT? (Do not include the dollar sign ($). Round your answer to the nearest whole dollar amount. (e.g., 32)), , Earnings before interest and corporate taxes $

Order Your Custom Essay
Order Your Custom Essay