Manly Manufacturing Is Comparing Two Different Capital Structures

Multiple Choice

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

A) $9000
B) $10 750
C) $8550
D) $10 400
E) $9600