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 $75,000 at 16% coupon rate $50,000 at 15% coupon rate Preferred stock $10,000 with an 18% annual dividend $15,000 with an 18%annual dividend Common stock 8,000 shares 10,000 shares a. Calculate two EBITEPS coordinates for each structure at EBIT 25,000 and 35,000 b. Graph the two capital structures on the same set of EBITEPS axes. c. Discuss the leverage and risk associated with each of the structures. d. Over what range of EBIT is each structure preferred? e. Which structure do you recommend if the firm expects its EBIT to be $35,000? Explain.