Question: EBIT-EPS and capital structure-Data-Check is considering two capilal structures The key infomation is shown in the following takte Assitne a 21 . Fa tax rate
EBIT-EPS and capital structure-Data-Check is considering two capilal structures The key infomation is shown in the following takte Assitne a 21 . Fa tax rate a. Calculate two EBIT-EPS coordinates for each of the structures by selecting any two EBIT values and finding thair associated EPS valueb b. Plot the two capital sirtictures on at 90t of EBIT-EPS axos c. Indicate over what EBIT range, if any each structure is preferted. d. Discuss the leverage and risk aspects of each structure. e. If the firm is fairly certain that its EBIT will exceed $73,000. which structure would you recomimend? Why? What is tre tax rato was highor, say 40% ? a. Calculate two EBIT-EPS cocrdinates for each of the stroctures by selecing any two EBIT values and finding the associated EPS vakes: Complete the tables below using $50,000 and $60,000 EEIT. (Round to the nearnat dollar Round the EPS to the nearest cent)
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