Bellwood corp. is comparing two different capital structures. plan i would result in 30,000 shares of stock and $91,500 in debt. plan ii would result in 24,000 shares of stock and $274,500 in debt. the interest rate on the debt is 6 percent.

a.
ignoring taxes, compare both of these plans to an all-equity plan assuming that ebit will be $115,000. the all-equity plan would result in 33,000 shares of stock outstanding. what is the eps for each of these plans? (do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.)

b. in part (a), what are the break-even levels of ebit for each plan as compared to that for an all-equity plan? (do not round intermediate calculations.)
c. ignoring taxes, at what level of ebit will eps be identical for plans i and ii? (do not round intermediate calculations.)
d-1. assuming that the corporate tax rate is 21 percent, what is the eps of the firm?

Northern lights electronics just completed plans to distribute its new tablet. the product has several unique features that differentiate it from competitor products. the marketing team plans to begin a roll-out with to only one traditional retailer for the first two months. this strategy will give consumers the perception of the product’s stand-out personality and increase demand. marketing will proceed with for the next four months, where it plans to distribute to three other retailers, as well. for the last six months of the year, it will initiate distribution agreements with discount retailers and online retailers, and any other electronics store that wants to carry it. the marketing team is confident that the tablet will cycle through the first three stages of its product life cycle quickly. as the tablet reaches maturity during the second half of its first year in the market, it is good strategy to proceed with as described above. intensive distribution; selective distribution; exclusive distribution exclusive distribution; selective distribution; intensive distribution tertiary level distribution; secondary level distribution; mono-level distribution mono-level distribution; secondary level distribution; tertiary level distribution