Degree of financial leverage Northwestern Savings and Loan has a current capital structure consisting of $210,000 of 18% (annual interest) debt and 3,000 shares of common stock. The firm pays taxes at the rate of 25%. a. Using EBIT values of $79,000 and $118,000, determine the associated earnings per share (EPS). b. Using $79,000 of EBIT as a base, calculate the degree of financial leverage (DFL). c. Rework parts a and b assuming that the firm has $108,000 of 18% (annual interest) debt and 4,000 shares of common stock. a. Calculate the EPS for EBIT value of $79,000 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 Less: Taxes (25%) Net profit after taxes $ EPS (3,000 shares) $