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Integrative-Optimal capital structure Medalion Cooling Systems, Inc., has total assets of $9,300 000, EBIT of $2,040.000, and prefemed dividends of $200,000 and is taxed at

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Integrative-Optimal capital structure Medalion Cooling Systems, Inc., has total assets of $9,300 000, EBIT of $2,040.000, and prefemed dividends of $200,000 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 variou dness, and the overall required return o investment Capital structure debt ratio Cost of debt, Required return Number of common stock shares 200,000 0% 12.1% 15 82 168,000 132 30 88 135,000 143 45 12.3 114,000 158 60 148 82.000 10.7 Calculatings per shere for each level of indebtedness t. Use the equation PEPSI, and the eamings per share calculated in part (a) to calculate a price per share for each level of indebtedness Calculate the EPS below found to the nearest dolar Round the EPS to the cent) Debt Ratio 0% EBIT $ 2,040.000 Less T4% Nett Las Prefe dividende Pros 1 1 1 sharessanding S 1 on sen S 203.000

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