Absolute Corporation currently has $50 milion in liabilities and common equity in combination. The firm has no preferred stock. The CFO constructed the following table to show the CEO the effect of changing the firm's capital structure. Amount of Debt in the Capital Structure $15,000,000 20,000,000 25,000,000 According to this information, what is Absolute's The optimal capital structure contains Earnings per Share (EPS) $2.00 2.70 3.30 Market Price per Share (Po) $111.75 110.75 100.95 optimal capital structure? Explain your answer. Round your answer to the nearest whole number. % of debt because it -Select- -Select- has the lowest amount of debt in the capital structure provides the highest market price per share of stack provides the highest earnings per share BODDESin Smith Bottling Company (SBC) expects this year's sales to be $460,000. SBC's variable operating costs are 60 percent of sales and its fixed operating costs are $104,000. SBC pays interest on its debt equal to $55,000 per year and its marginal tax rate is 35 percent. SBC has no preferred stock. a. Compute SBC's DOL, DFL, and DTL. Do not round intermediate calculations. Round your answers to two decimal places. DOL: OFL: DTL: b. If sales turn out to be $496,800 rather than $460,000, what will be SBC's EBIT and net income? Do not round intermediate calculations. Roun your answers to the nearest dollar, EBIT: $ Net Income: $