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2+3+1 marks 1. XYZ firm is comparing two different capital structures CURRENT PLAN EQUITY SHARES...

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2+3+1 marks 1. XYZ firm is comparing two different capital structures CURRENT PLAN EQUITY SHARES OUTSTANDING 10,150,000 DEBT 25,000,000 COST OF DEBT 14% NEW PLAN 18,500,000 5,000,000 14% Assuming no tax If EBIT is $ 6,000,000, which plan will result in the higher EPS? b. What is the break-even EBIT at which both the Plans would give the same EPS? What is the significance of the break-even EBIT? Why is it determined

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