13.3 19.7 Integrative Optimal capital structure Medalion Cooling Systems, Inc, has total assets of $11.000,000, EBIT of $2.030,000, and preferred dividends of $198.000 and is one at a rate of 40%. In an efforts determine the optimal capital structure, the firm has assembled data on the cost of debt, the number of shares of common stock for various levels of inderness, and the overall required rotum on investment Capital structure Number of common debt ratio Cost of debito stock shares Required return.. OX 0 20 000 15 83 172,000 30 130 000 45 122 100.000 15 60 15.1 70.000 Calculate camins per share for each level of indebtedness . Use the equation PEPSI, and the ringe per share calculated in part to calcite are per share for each level of dress we canings por share for each level of interes CateEPbelow. Round to the nearest doar Round the EP to the nearest cent) Det Hati ON EDIT 2.000.000 Les West $ $ Tas 40 in the edit ads and then continue to the next question etermine the optimal capital structure, the firm has assembled data on the cost of debt, the number of shares of common stock for Capital structure Number of common debt ratio Cost of debt, rd stock shares Required return, rs 0% 0% 202,000 12.1% 15 8.3 172,000 13.3 30 9.3 139,000 14.1 45 12.2. 106,000 15.9 60 15.1 79,000 19.7 a. Calculate earnings per share for each level of indebtedness. b. Use the equation Po = EPS/rs and the earnings per share calculated in part (a) to calculate a price per share for each level of indet c. Choose the optimal capital structure. Justify your choice