Northwestern Savings and Loan has a current capital structure consisting of $ $200,000$ of$15\%($annual interest$)$ debt and $3,000$ shares of common stock. The firm pays taxes at the rate of $21\%.$

a$.$ Using EBIT values of $ $75,000$ and $ $120,000,$ determine the associated earnings per share$($EPS$).$

b$.$ Using $ $75,000$ of EBIT as a$$ base, calculate the degree of financial leverage$($DFL$).$

c$.$ Rework parts a and b assuming that the firm has $ $104,000$ of $15\%($annual interest$)$ debt and $4,000$ shares of common stock.