Homework help needed: PROBLEM 12-2 EBIT-EPS DATA Plan A: Raise 5,000,000 Shares 160,000 Plan B: Raise 3,000,000 Int rate 14% Raise 2,000,000 Shares 64,000 Tax rate 35% A) EBIT = B) Plan A Plan B EBIT...

Homework help needed:

PROBLEM 12-2
EBIT-EPS
DATA
Plan A:
Raise	5,000,000
Shares	160,000
Plan B:
Raise	3,000,000
Int rate	14%
Raise	2,000,000
Shares	64,000
Tax rate	35%
A)
EBIT =
B)
Plan A	Plan B
EBIT	0	0
I	0	420,000
EBT	0	(420,000)
T	0	(147,000)
EAC	0	(273,000)
/ no. of shares	160,000	64,000
EPS

My EBIT-EPS Indifference Point equation:
=

How do I isolate and solve the EBIT ?



Homework help needed: PROBLEM 12-2       EBIT-EPS         DATA Plan A: Raise 5,000,000 Shares 160,000 Plan B: Raise 3,000,000 Int rate 14% Raise 2,000,000 Shares 64,000 Tax rate 35% A) EBIT =   B) Plan A Plan B EBIT 0 0 I 0 420,000 EBT 0 (420,000) T 0 (147,000) EAC 0 (273,000) / no. of shares 160,000 64,000 EPS     My EBIT-EPS Indifference Point equation: = How do I isolate and solve the EBIT ?