1. MicroLink is a non-profit organization. Currently, the company has no debt and there are 4,000,000 common shares outstanding. The current share price is $2.50. The firm's senior management is proposing a capital restructuring to borrow $3,000,000 and use the proceeds to repurchase equity. The cost of debt is 8%. Assume there are no corporate taxes. i)if the current level of EBIT is $1,000,000, what will be the EPS of the firm if the proposal is implemented? ii)What is the break-even level of EBIT between the current and proposed capital structure? iii) Assume the corporate tax rate is 35%. What is the break -even level of EPS for the firm? proposal is implemented? 3