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Contrail Air, Inc., is looking at two capital structures.Plan A is an all equity with 500,000 shares outstandingPlan B is a levered plan with 320,000 shares outstanding anddebt of $3,467,000 outstanding. The interest rate on the debt is 8percent, and there are no taxes.If EBIT is $500,000, which plan will result in the higherEPS?If EBIT is $800,000, which plan will result in the higherEPS?What is the break-even EBIT
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