(Degree of financial leverage) For each of the two firms below, using EBIT levels of $40000 and $50000, and given the following information, answer parts a to c, assuming a 30% corporate tax rate. 13-22 Capital source Debt Preference dividends Ordinary capital Firm B $100 000 at 10% 5000 shares at $2 each 7000 shares issued Firm A $75 000 at 12% 2000 shares at $2.50 each 10 000 shares issued a What is the level of EPS associated with each EBIT for the two firms? b What is the degree of financial leverage (DFL) for each firm, using the $40000 EBIT base level? c How would you compare and contrast the financial leverage of each firm