Using the information provided in Tables 12.1 and 12.2, compute OptiCap?s EPS when sales are $200,000 and the debt-to-total-assets ratio (D/TA) is 20 percent.

Tables 12.1?

Tables 12.2

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Financial Information for OptiCap, 2016 ($ thousands, except per-share values) 1. Balance Sheet-12/31/16 Current assets $100.0 Debt $ 00 Net fixed assets 100.0 Common equity (10,000 shares) 200.0 Total assets $200.0 Total liabilities and equity $200.0 II. Income Statement for 2016 Sales $200.0 Variable operating costs (60%) ( 120.0) Gross profit 80.0 Fixed operating costs ( 48.0) Eamings before interest and taxes (EBIT) 32.0 Interest expense Earnings before taxes (EBT) 32.0 Taxes (409%) ( 12.8) Net income $ 19.2 Common dividend $ 19.2 Addition to retained earnings II. Per-Share Information Earnings per share (EPS) = ($19,200/10,000 shares) = 1.92 Dividends per share (DPS) = ($19,200/10,000 shares) = $ 1.92 Market price per share (P,) $ 20.00 Cost of Debt, r, and Number of Common Shares Outstanding for OptiCap at Different Capital Structures ($ thousands) Shares Outstanding 10,000 9,000 8,000 Cost of Debt, Amount Borrowed $0 Common Stock $200 TotalAssets Debt/Assets Ratio 0% $200 200 10 20 180 8.0% 200 20 40 160 8.5 200 30 60 140 7,000 9.0 6,000 5,000 200 40 80 120 10.0 200 50 100 100 12.0 200 60 120 80 4,000 15.0