a. (6 Marks) The GNR Corporation is considering a capital restructuring that involves increasing its existing $5 million in debt to $25 million. The extra debt will retire existing stock at its current share price 40$/sh. The interest rate on debt is 12 percent and is not expected to change. The firm currently has 1 million shares outstanding. If the restructuring is expected to increase EPS, what is the minimum level for EBIT that GNR's management must be expecting? Ignore taxes in your answer and use an EBIT versus EPS graph to compare the current capital structure to the scenario with more debt. b. (4 Marks) Calculate the degree of financial leverage (F.L.) at $6 million EBIT for the current and proposed capital structures. Explain financial leverage and refer to the difference between your answers for the current and proposed plan