Corporate Finace

Use the following information to answer the next two questions: A firm has a current capital structure consisting of $400,000 debt with an annual interest rate of 12 percent and 50,000 shares of common stock. The firm's tax rate is 21 percent and the estimated level of EBIT is $200,000. Houk 22. Calculate one of the EBIT-EPS coordinates for the firm's current capital structure. a. $150,000 EBIT, $1.82 EPS b. $200,000 EBIT, $3.04 EPS c. $200,000 EBIT, $2.40 EPS d. $200,000 EBIT, $4.00 EPS 20s 23.Calculate the second EBIT-EPS coordinate for the firm's existing capital structure. c. $80,000 EBIT, $O EPS d. $36,000 EBIT, $O EPS a. $152,000 EBIT, $3.50 EPS b. $48,000 EBIT, $0 EPS