Assume that a company has $10 million in assets (where the market value of the assets is equal to the book value of the assets) and no debt. The companys marginal tax rate is 35% and has 500,000 shares outstanding. The companys earnings before interest and taxes (EBIT) is $3.88 million. The firms stock price is $27 per share and the cost of equity is 11%. The company is thinking of issuing bonds and simultaneously repurchasing a portion of its stock. If the company changes its capital structure from no debt to 25% debt based on market values, the firms cost of equity will increase to 13% because of the increased risk. The bonds can be sold at a cost of 9%. The firms earnings are not expected to grow over time. All of its earnings will be paid out as dividends. Answer the following questions: What impact will this utilization of this debt have on the value of the company? Whats going to be the companys EPS after the recapitalization? Whats going to be the companys new stock price? The $3.88 million EBIT discussed above is determined from this probability distribution: Probability EBIT ($) 0.05 - 1 million 0.25 2.3 million 0.4 4 million 0.25 5.8 million 0.05 6.1 million Whats the times interest earned ratio at each probability level? Answer needs to be in excel format