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Degree of financial leverage Northwestern Savings and Loan has a current capital structure consisting of $210,000 of 16% annual interest) debt and 2,000 shares of common stock. The firm pays taxes at the rate of 25%. a. Using EBIT values of $82,000 and $120,000, determine the associated earnings per share (EPS). b. Using $82,000 of EBIT as a base, calculate the degree of financial leverage (DFL). c. Rework parts a and b assuming that the firm has $97,000 of 16% (annual interest) debt and 3,000 shares of common stock. a. Calculate the EPS for EBIT value of $82,000 below: (Round to the nearest dollar except for the EPS which should be rounded to the nearest cent.) EBIT Less: Interest Net profits before taxes $ Less: Taxes (25%) Net profit after taxes $ EPS (2,000 shares) Calculate the EPS for EBIT value of $120,000 below: (Round to the nearest dollar except for the EPS which should be rounded to the nearest cent.) EBIT $ $ Less: Interest Net profits before taxes Less: Taxes (25%) Net profit after taxes EPS (2,000 shares) $ b. The degree of financial leverage (DFL) with $82,000 of EBIT as a base is (Round to two decimal places.) c. Calculate the EPS for EBIT value of $82,000 below: (Round to the nearest dollar except for the EPS which should be rounded to the nearest cent.) EBIT Less: Interest Net profits before taxes Less: Taxes (25%) Net profit after taxes EPS (3,000 shares) Calculate the EPS for EBIT value of $120,000 below: (Round to the nearest dollar except for the EPS which should be rounded to the nearest cent.) CA EBIT Less: Interest Net profits before taxes Less: Taxes (25%) Net profit after taxes EPS (3,000 shares) The degree of financial leverage (DFL) with $82,000 of EBIT as a base is (Round to two decimal places.)