1. The National Powerhouse Company currently has no debt in its capital structure. The company has decided to restructure, raising $5 million debt at 12 per cent. ABC currently has 500000 shares on issue at a price of $200 per share. As a result of the restructure, what is the minimum level of EBIT the company needs to maintain EPS (the breakeven EBIT)? Ignore taxes 2. For the National Powerhouse Company given in problem 1, compute the interest tax shield if the tax rate is 35%. If the company maintains the same operations and hence EBIT of $100,000 and the required rate of return on unleveraged firm is 13%, what is the Value of leveraged firm