What is your question? What don't you understand? Where is your solution? Do you just want someone to do your work for you? You would learn nothing that way and it would be a disservice to you. And if you turned in the answer prepared by another person as your own work you would be committing plagiarism which is unethical.

In a spreadsheet, prepare an income statement for each company from EBIT down to Net income and EPS. Then plug in the avaialbe EBIT and see what the EPS result is.

Alternatively you have EPS for Mac:

[(X - 500) - .34(X-500)]/200

and for PC you have

(X - .34X)/400

Then set the two formulas equal to each other and solve for X.

It is not appropriate of you to assign your homework to others. To get help you should do the work as well as you can and provide your solution so someone can help you by pointing out where you are wrong and by explaining areas where you show weaknesses.

PC and Mac are identical firms operating in identical markets. PC is unlevered with assets valued at $10,000 and has 400 shares of stock outstanding. Mac also has $10,000 in assets and has $5,000 in debt financed at an interest rate of 10% and has 200 shares of stock outstanding. Both firms pay tax at the rate of 34%. Which comes closest to the level of earnings before interest and tax (EBIT) that would make earnings per share (EPS) the same for PC and Mac?

$ 800

$ 600

$ 300

$1,600

$1,000

What is your answer. Please explain mathematical calculation as well.