D HW Anal 1. Fill in the banks in the highlighted call for 20% portes Guna ESIT EPS analysis for the cand proposedentale (EST range from $200,000 to 11,100,000 with 10,000 increment for 10% to the chart 2 90 Current Proposed 11 set 10.000.000 000.000 12 De 10 10.000.000 15 Eur BR000.000 12.000.000 14 Catur quity Ratio 13 MP 140 540 An of care 16 Shares Oud 17 NA 10 30 21 22 AT Cure Capital RNA DE Espana 000 1000 000 000 000 Propeed Capital Str Dolce Race Expected spansion EBIT 1200.000 100.000 1.000.000 inte FOT TA Nutcome ROE 24 ERT 25 T 26 Non 27 ROE 30 31 Et EPS EPP 54 35 10 37 General Marge & Center $ - % Cantor Form Cell Formatting es Table Styles Delets Format E F G H L M HW Assignment 1. Fill in the blanks in the highlighted cells for 20% corporate tax rate. 2. Generate EBIT-EPS analysis for the current and proposed capital structures (EBIT range from $200,000 to 51,100,000 with 10,000 increments) for 20% tax rate. Plot the chart. 9 10 Current Proposed 11 Assets $8,000,000 $8,000,000 12 Debt $0 $6,000,000 13 Equity $8,000,000 $2.000.000 14 DebtEquity Ratio 15 Share Price $40 $40 Assumption: MV of stock - BV per share 16 Shares Outstanding 17 Interest rate NA 8% 18 19 20 Current Capital Structure: No Debt Proposed Capital Structure: Debt = $6 million 21 Recession Expected Expansion Recession Expected Expansion 22 EBIT $250.000 $600,000 $1,000,000 ESIT $250.000 $600,000 $5.000.000 23 Interest Interest 24 EBT EBT 25 Tax Tax 26 Not Income Not Income ROE 27 ROE EPS 28 EPS 29 30 31 EBIT EPS (Current) EPS (Proposed) 32 34