B) 1. Angelus Press Ltd, has the following financial structure represented on a portion of its balance sheet. Accounts Payable $700,000 Short-term debt $450,000 $1,150,000 Long term debt $900,000 Shareholder equity $1,200,000 Total $3,250,000 a. If the market value of Angelus Press Ltd's equity of $1,000,000 and the value of the firm's debt is equal to its book value, assuming excess cash is zero, what is the debt-to-enterprise value ratio for Angelus Press? [4.33 marks] b. Based on the ratio calculated, describe the financing mix (capital structure weight) for Angelus Press Ltd. [2] marks] II). Swank, Inc. has earnings before interest and taxes (EBIT) OF 400,000, Interest expense of 250,000, and faces a corporate tax rate of 35%. a. What is Swank's net income? [2.5 marks] b. What would swank's net income if it did not have any debt (and consequently no interest expense)? [2.5 marks] c. What are the firm's interest tax savings? Current liabilities [2 marks]