Debt and financial risk Tower Interiors has made the forecast of sales shown in the following table Sales Probability 0.30 0.55 0.15 $190,000 290,000 390,000 The firm has ed operating costs of S 75,500 and variable operating costs equal to 60% of the sales le e . The company ays S1 1.400 ninterest per penod. The t ates 40% a. Compute the earnings before interest and taxes (EBIT) for each level of sales b. Compute the earnings per share EPS or each evel of sales, the expected EPS he standard de ation of the EPS and the coefficient of variation of EPS assuming hat here are 100 shares of common stock outstanding. c. Tower has the opportunity to reduce its leverage to zero and pay no interest. This will require that the number of shares outstanding be increased to 15,150. Repeat part (b) under this assumption. d. Compare your findings in parts (b) and (c), and comment on the effect of the reduction of debt to zero on the firm's financial risk. Calcuiate the EPS below. (Round to the nearest dollar except Tor t Probability EBIT Less: Interest Earnings before taxes Less: Taxes Earnings after taxes 0.30 500 EPS