This part of the project is to analyze the following ca

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    This part of the project is to analyze the following capital structure plans. You will use the EBIT-EPS analysis to evaluate the two plans. One plan is all equity and one has debt and equity.
    Plan
    Plan 1: All Equity
    Plan 2: Some Debt
    Shares of Equity
    80000
    50000
    Debt
    0
    $2000000
    Cost of debt
    0
    12%
    Interest Expense
    0
    $240000
    Tax Rate
    34%
    34%
    Determine the EBIT indifference point
    Discuss the implications of EBIT above and below this point
    You must submit your backup in Excel or other supporting documentation showing how answers were reached.
    Attachments:

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