Uptown Construction Is Comparing Two Different Capital Structures

Multiple Choice

Uptown Construction is comparing two different capital structures.Plan I would result in 16,000 shares of stock and $160,000 in debt.Plan II would result in 18,000 shares of stock and $110,000 in debt.The interest rate on the debt is 9 percent.Ignoring taxes, EPS will be identical for Plans I and II when EBIT equals which one of the following?

A) $48,550
B) $50,400
C) $69,600
D) $53,700
E) $60,750