For structure A and B using 30,000 and 50,000EBIT

EBIT-EPS and preferred stock Litho-Print is considering two possible capital structures, A and B, shown in the following table. Assume a 40% tax rate Source of capital Structure A Structure B Long-term debt 575,000 at 15,3% coupon rate $50,000 at 14.3% coupon rate Preferred stock $12,000 with an annual dividend of 17.5% $17,000 with an annual dividend of 17.5% Common stock 8,200 shares 10,200 shares a. Calculate two EBIT-EPS coordinates for each of the structures by selecting any two EBIT values and finding their associated EPS values b. Graph the two capital structures on the same set of EBIT-EPS axes c. Discuss the leverage and risk associated with each of the structures. d. Over what range of EBIT is each structure preferred? CO a. Calculate two EBIT-EPS coordinates for each of the structures by selecting any two EBIT values and finding their associated EPS values Complete the tables below using $30,000 and $50,000 EBIT (Round to the nearest dollar Round the EPS to three decimal places) EBIT 30,000 Less: Interest $ $ $ GA Net profits before taxes GA Less: Taxes $ $ Net profit after taxes Less: Preferred dividends Earnings available for common shareholders $ 6 67 $ EPS (8,200 shares) BA