Calculate an EBIT break-even between a debt firm (DF) and an all-equity firm (EF) based on the following information: DF interest = $ 31 comma 900, DF number common shares = 6 comma 700, EF number of common shares = 10 comma 100, and tax rate = 35 percent. Check your answer by calculating the EPS for both DF and EF at the break-even EBIT.
The break-even EBIT is. (Round to the nearest dollar.)
Debt Firm EPS will be. (Round to the nearest cent.)
All-Equity Firm EPS will be . (Round to the nearest cent.)