10 Integrative Optimal capital vructure Medalion Cooling Systems, Inc. has total of 59.500,000. EBIT of $2.050.000, and profered vidends of $206.000 and isted rate of 40% in an effort to determine the optimal capital structure, the form has assembled data on the cost of a number of shares of common stock for various levels of Inditees and the overall roured return on investment Capital structure Number of common debate Cost of it, stock shares Required 05 264.00 TS 170.000 123 30 139 45 119 110.000 162 60 147 84000 201 Calculate in perforach level of indebtedness . Use the equation PEPSI, and the carrings per share calculated in part in to calculate a proper share for each level of indebtedness Calculate canne per share for each level of indebtedness Calculate the EPS low Round to the nearest dollar Round the EP to the nearest cent) Debt Ratio 5 2.050 000 Les West 5 EBT 5 T40 5 Net 5 donde Proto 5 Enter any number in te onthou toe en questo Integrative-Optimal capital structure Medallion Cooling Systems, Inc., has total assets of $9,300,000, EBIT of $2,050, has assembled data on the cost of debt, the number of shares of common stock for various levels of indebtedness, and the Capital structure Number of common debt ratio Cost of debt, Pd stock shares Required return, rs 0% 0% 204,000 11.8% 15 7.9 170,000 12.8 30 9.1 136,000 13.9 45 11.9 110,000 16.2 60 14.7 84,000 20.1 a. Calculate earnings per share for each level of indebtedness b. Use the equation Po = EPS Ir, and the earnings per share calculated in part (a) to calculate a price per share for each level common stockholders $ # shares outstanding $ 204,000 EPS $ Calculate the EPS below. (Round to the nearest dollar. Round the EPS to the nearest cent.) Debt Ratio EBIT 15% $ 2.050.000 $ Less: Interest EBT $ $ Taxes @40% Net profit Less: Preferred dividends $ $ Enter any number in the edit fields and then continue to the next question This Question: 7 pts Integrative-Optimal capital structure Medallion Cooling Systems, Inc., has total assets has assembled data on the cost of debt, the number of shares of common stock for various le Capital structure Number of common debt ratio Cost of debt, I'd stock shares Requ 0% 0% 204,000 15 7.9 170,000 30 9.1 136,000 45 11.9 110,000 60 14.7 84,000 a. Calculate earnings per share for each level of indebtedness. b. Use the equation Po=EPS Irs and the earnings per share calculated in part (a) to calculate "dividends $ Profits available to common stockholders $ #shares outstanding $ 170,000 EPS $ Calculate the EPS below. (Round to the nearest dollar. Round the EPS to the nearest cent.) Debt Ratio EBIT 30% 2,050,000 $ Less: Interest $ EBT $ Taxes @40% $ Enter any number in the edit fields and then continue to the next question 7.9 0% 0% 204,000 11.8% 15 170,000 12.8 30 9.1 136,000 13.9 45 11.9 110,000 16.2 60 14.7 84,000 20.1 a. Calculate earnings per share for each level of indebtedness. b. Use the equation Po = EPS Ir, and the earnings per share calculated in part (a) to calculate a price per share for each level of in c. Choose the optimal capital structure. Justify your choice. .a. Calculate eamings per share for each level of indebtedness. Calculate the EPS below. (Round to the nearest dollar. Round the EPS to the nearest cent.) Debt Ratio 0% EBIT S 2,050,000 Less: Interest $ EBT $ Taxes 40% $ Net profit Less: Preferred dividends $ Profits available to common stockholders S $ Enter any number in the edit fields and then continue to the next