Integrative Optimal capital structure Medallion Cooling Systems, has total assets of $10,200,000, EBIT of $2,000,000, and preferred dividends of $204,000 and is taxed at a rate of 40%. In an effort to determine the optimal capital structure, the firm has assembled data on the cost of debt, the number of shares of common stock for various levels of indebtedness, and the overall required return on investment: Capital structure debt ratio 0% 0 15 30 45 60 Cost of debt, I'd 0% 7.8 8.8 12.3 15.1 Number of common stock shares 196,000 173,000 142,000 108,000 84,000 Required return, rs 11.7% 13.3 14.2 15.9 19.9 a. Calculate earnings per share for each level of indebtedness. h Ilca tha anuation D. = EPS/r and the earninne nor chara alculated in nart (alto calculate a nrina nar chore for each level of indehtednecc a. Calculate earnings per share for each level of indebtedness. Calculate the EPS below: (Round to the nearest dollar. Round the EPS to the nearest cent.) Debt Ratio 0% EBIT $ 2,000,000 Less: Interest $ EBT $ Taxes @40% $ $ Net profit Less: Preferred dividends Profits available to common stockholders $ # shares outstanding $ 196,000 EPS $