Degree of financial leverage Northwestern Savings and Loan has a current capital structure consisting of $300,000 of 14% (annual interest) debt and 1,000 shares of common stock. The firm pays taxes at the rate of 30%. a. Using EBIT values of $82,000 and $118,000, determine the associated earnings per share (EPS). b. Using $82,000 of EBIT as a base, calculate the degree of financial leverage (DFL). c. Rework parts a and b assuming that the firm has $105,000 of 14% (annual interest) debt and 2,000 shares of common stock. a. Calculate the EPS for EBIT value of $82,000 below: (Round to the nearest dollar except for the EPS which should be rounded to the nearest cent.) EBIT Less: Interest Net profits before taxes A Less: Taxes (30%) Net profit after taxes A A EPS (1,000 shares) Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check