Good Turbine Bhd ("GTB")., a producer of turbine generators, is in this situation: EBIT = RM4mil, tax rate = T = 35%, debt outstanding = D = RM2mil, rd = 10%, rs = 15%, shares of stock outstanding = No = 600,000 and the book value per share = RM10. Because GTB's product market is stable and the company expects no growth, all earnings are paid out as dividends. The debt consists of perpetual bonds. Required: (a) What are GTB's earnings per share ("EPS") as its price per share ("P"); (b) What is GTB's weighted average cost of capital ("WACC"); (c) GTB can increase its debt by $8mil to a total of RM10mil, using the new debt to buy back and retire some of its shares at the current price. Its interest rate on the debt will be 12% (it will have to call and refund the old debt) and its cost of equity will rise from 15% to 17%. EBIT will remain constant. Should GTB change its capital structure? Why or why not?; t the situation? Assume that the new and the still outstanding debt are (d) If GTB did not have to refund the $2mil of debt, how would equally risky, with ra = 12%, but the coupon rate on the old debt is 10%; (e) What is GTB's Times Interest Earned ("TIE") coverage ratio under the original situation and under the conditions in Part (c) of this question? (Note: TIE coverage ratio = EBIT/Interest charge)