Based on the following set of information, do an EPS-EBIT analysis. You need to consider the following financing options: 100% debt, 75% debt and 25% equity, 50% debt and 50% equity, 25% debt and 75% equity, and 100% equity.

• Amount of capital needed: $100 million
• Estimated EBIT range
  • Low end: $30 million (recession scenario)
  • Midpoint: $40 million (normalcy scenario)
  • High end: $50 million (boom scenario)

Interest rate: 4 percent

Tax rate: 30 percent

Stock price: $50

Number of shares outstanding: 500 million

Your analysis should be accompanied with a thorough interpretation of results. You also need to generate a EPS/EBIT chart.