Feel the Bern Corp. has the following operating results and capital structure ($000).

Revenue	$6,000		Debt	$1,200
Cost/Expense	4,500		Equity	8,800
EBIT	$1,500		Total	$10,000

The firm is contemplating a capital restructuring to 60% debt. Its stock is currently selling for book value at $25 per share. The interest rate is 8%, and combined state and federal taxes are 43%.

1. Calculate EPS under the current and proposed capital structures. Round the answers to two decimal places. Enter numbers only; do not include the "$".

   Current	$ per share
   Proposed	$ per share

2. Calculate the DFL under both structures. Round the answers to two decimal places.

   Current
   Proposed

3. Use the DFLs to forecast the resulting EPS under each structure if operating profit falls off by -5%, -10%, or -25%. Round the answers to two decimal places. Do not round intermediate calculations. Enter numbers only; do not include the "$".

   Forecast EPS
   % EBIT	Current	Proposed
   5%
   10%
   25%