Question: Please make everything clear an detailed. Please add all formulas and be clear or what they belong too. Please use Excel. Its dowsnt have to
Based on the following set of information, do an EPS-EBIT analysis. You need to consider the following financing options: 100% debt, 70% debt and 30% equity, 50% debt and 50% equity, 30% debt and 70% equity, and 100% equity. Amount of capital needed: $100 million Estimated EBIT range o Low end: $20 million (recession scenario) o Midpoint: $30 million (normalcy scenario) High end: $40 million (boom scenario) Interest rate: 5 percent Tax rate: 30 percent Stock price: $50 Number of shares outstanding: 500 million O Your analysis should be accompanied with a thorough interpretation of results
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