Degree of financial leverage Northwestern Savings and Loan has a current capital structure consisting of $210,000 of 15% (annual interest) debt and 1,000 shares of common stock. The firm pays taxes at the rate of 30%. a. Using EBIT values of $81,000 and $125,000, determine the associated earnings per share (EPS). b. Using $81,000 of EBIT as a base, calculate the degree of financial leverage (DFL). c. Rework parts a and b assuming that the firm has $110,000 of 15% (annual interest) debt and 2,000 shares of common stock. a. Calculate the EPS for EBIT value of $81,000 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 (30%) Net profit after taxes EPS (1,000 shares) Calculate the EPS for EBIT value of $125,000 below: (Round to the nearest dollar except for the EPS which should be rounded to the nearest cent.) EBIT Less: Interest A Net profits before taxes Less: Taxes (30%) Net profit after taxes A A EPS (1,000 shares) b. The degree of financial leverage (DFL) with $81,000 of EBIT as a base is . (Round to two decimal places.) c. Calculate the EPS for EBIT value of $81,000 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 EPS (2,000 shares) Calculate the EPS for EBIT value of $125,000 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 (30%) Net profit after taxes EPS (2,000 shares) The degree of financial leverage (DFL) with $81,000 of EBIT as a base is . (Round to two decimal places.)