Degree of financial leverage Northwestern Savings and Loan has a current capital structure consisting of $290,000 of 18% (annual interest) debt and 4,000 shares of common stock. The firm pays taxes at the rate of 30% a. Using EBIT values of $84,000 and $123,000, determine the associated earnings per share (EPS) b. Using $84,000 of EBIT as a base, calculate the degree of financial leverage (DFL) c. Rework parts a and b assuming that the firm has $98,000 of 18% (annual interest) debt and 5,000 shares of common stock