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BNM is comparing different capital structures. Plan A is all equity with 20m (million)shares outstanding. Plan B would result in 14m shares and $150m in debt. Plan C would result in 11m shares and $225m in debt. The interest rate on the debt is 8 percent.Ignoring taxes, compare these plans assuming that expected EBIT is $45m. Of the three plans, the firm will have the highest expected EPS with _____ and the lowest expected EPS with _____.A. Plan A; Plan BB. Plan A; Plan CC. Plan C; Plan AD. Plan B; Plan C
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