answer needed for a,b & c

5.800.000, EBIT of $2,010,000, and preferred dividends of $202.000 and is awed at a rate of 40%. In an effort to 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 indebtedness, and the overall required return on investment Capital structure debt ratio Cost of debt, la Number of common stock shares Required return 0% 199,000 12.1% 174,000 132 142.000 142 11.9 106,000 158 81,000 0% 77 202 a. Calculate comings por share for each level of indebtedness b. Use the equation Po EPS , and the earrings per share calculated in part(a) to calculate a price per share for each level of indebtedness Chan thential cantantuni wahine a. Calculate earnings por 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 $ 2,010,000 Less: Interest EBT Taxes @40% Net profit Less: Preferred dividends Profits available to Cost of debt. To debt ratio 0% 15 0% 7.7 stock shares 199,000 174,000 142,000 106,000 81,000 Required return, 12.1% 13.2 142 15.8 20.2 45 60 9.2 11.9 14.9 a. Calculate earnings per share for each level of indebtedness. b. Use the equation Po=EPS/r, and the earnings per share calculated in part (a) to calculate a price per share for each level of indebtedness. c. Choose the optimal capital structure. Justify your choice. a. Calculate earnings per share for each level of indebtedness. Calculate the EPS below: (Round to the nearest dollar. Round the EPS to the nearest cont.) Debt Ratio 0% $ 2,010,000 EBIT Less: Interest EBT Taxes @40% Net profit Less: Preferred dividends Profits available to 5.800.000, EBIT of $2,010,000, and preferred dividends of $202.000 and is awed at a rate of 40%. In an effort to 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 indebtedness, and the overall required return on investment Capital structure debt ratio Cost of debt, la Number of common stock shares Required return 0% 199,000 12.1% 174,000 132 142.000 142 11.9 106,000 158 81,000 0% 77 202 a. Calculate comings por share for each level of indebtedness b. Use the equation Po EPS , and the earrings per share calculated in part(a) to calculate a price per share for each level of indebtedness Chan thential cantantuni wahine a. Calculate earnings por 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 $ 2,010,000 Less: Interest EBT Taxes @40% Net profit Less: Preferred dividends Profits available to Cost of debt. To debt ratio 0% 15 0% 7.7 stock shares 199,000 174,000 142,000 106,000 81,000 Required return, 12.1% 13.2 142 15.8 20.2 45 60 9.2 11.9 14.9 a. Calculate earnings per share for each level of indebtedness. b. Use the equation Po=EPS/r, and the earnings per share calculated in part (a) to calculate a price per share for each level of indebtedness. c. Choose the optimal capital structure. Justify your choice. a. Calculate earnings per share for each level of indebtedness. Calculate the EPS below: (Round to the nearest dollar. Round the EPS to the nearest cont.) Debt Ratio 0% $ 2,010,000 EBIT Less: Interest EBT Taxes @40% Net profit Less: Preferred dividends Profits available to