Based on the information below,

1- should southwest airlines - use all debt, all stock, or a 50-50 combination of debt and stock to finance future market-development strategy?

2- provide a summary recommendation/analysis overview of the EPS/EBIT Analysis below.

Common Stock Financing Debt Financing Pessimistic Realistic Optimistic Pessimistic Realistic Optimistic EBIT Return to Part II 53 53 $3 53 53 Interest 0 0 0 10 15 7 EBT 5 3 3 7 13 4 Taxes 50 25 28 70 125 43 EAT 45 23 25 53 113 38 # Shares 3 3 3 1 1 EPS ($17.79) ($8.90) ($9.79 $98.59 $176.06 $59.86 Amount Needed Interest Rate 10% Stock 70% Debt 30% Tax Rate 8% Pessimistic Realistic Optimistic # Shares Outstanding 0.6 EBIT 53 Additional Shares Outstanding Needed 1.89 Interest 10 15 8 Stock Price $38.01 EBT 7 13 5 Taxes 70 125 53 EAT 53 113 47 # Shares 2 2 EPS $32.11 $57.34 $24.08 $200.00 $150.00 $100.00 Common Stock Financing Debt Financing $50.00 $0.00 $3 $3 ($50.00)