This part of the project is to analyze the following ca

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.
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