Uptown Construction Is Comparing Two Different Capital Structures

Multiple Choice

Uptown Construction is comparing two different capital structures.Plan I would result in 23,000 shares of stock and $320,000 in debt.Plan II would result in 17,000 shares of stock and $260,000 in debt.The interest rate on the debt is 10 percent.Ignoring taxes,EPS will be identical for Plans I and II when EBIT equals which one of the following?

A) $8,550
B) $9,000
C) $9,600
D) $10,400
E) $10,750