Financial Leverage. Given the results of the break$-$even analysis, Natural

Bodyworks has decided to produce the Ab Stretcher and forecasts sales of $4,000$

units, with an expected NOI of $$480,000.$ They face a $21\%$ tax rate.

The managers now face the financing decision. The project has initial costs of

$$2,000,000,$ which must be raised by issuing financial securities$.$ They can raise the

entire amount by selling $40,000$ shares of stock at $$50$ per share. They can raise

$$800,000$ via bonds, and the remaining $$1,200,000$ by selling $24,000$ shares of

stock. The bonds would require annual interest payments of $$80,000.$

What is the EPS of the preferred capital structure?