a. Calculate the expected earnings per share (EPS), the standard deviation of EPS, and the coefficient of variation of EPS for the three proposed capital structures. Debt ratio = 20% Probability of EBIT EBIT Less: Interest Net profit before taxes Less: Taxes (40%) Net profits after taxes EPS (20.000) Expected EPS Standard deviation of EPS Coefficient of variation of EPS .20 $ 20,000 5,000 $ 15,000 6,000 $ 9,000 $0.45 60 $ 80,000 5.000 $ 75,000 30.000 $ 45,000 $ 2.25 .20 $ 140,000 5,000 $ 135,000 54.000 $ 81,000 $ 4.05