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Question: dar corporation is comparing two different capital structures an allequity...

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DAR 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 170,000 shares of stock outstanding. Under Plan II, there would be 120,000 shares of stock outstanding and $2.4 million in debt outstanding. The interest rate on the debt is 7 percent, and there are no taxes.

  

a.

If EBIT is $450,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

  

EPS
  Plan I 2.65 (Correct)$
  Plan II 1.68 (incorrect)$

    

b.

If EBIT is $700,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

  

EPS
  Plan I 4.12(correct)$
  Plan II 3.17(incorrect)$

Please help me calculate the incorrect figures and explain the result

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