- Integrative-Optimal capital structure Medallion Cooling Systems, Inc. has total assets of $9.200.000. EBIT of 51.960.000 and preferred dividends of $198.000 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 Number of common Cost of debt, debt ratio stock shares Required retur, a. Calculate eamings per share for each level of indebtedness Calculate the EPS below (Round to the nearest dollar. Round the EPS to the nearest cont.) Debt Ratio Enter any number in the edit fields and then continue to the next question ans Tch 040 59200 8.1 8.8 204,000 171.000 141,000 115,000 83,000 11.8 149 19.8 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 cont.) Debt Ratio Enter any number in the edit fields and then continue to the next question uations search 83,000 a. Calculate eamings per share for each level of indebtedness b. Use the equation Po=EPS Ir, and the earnings per share calculated in part (a) to calculate a price per share for each level of indebtedness. c. Choose the optimal capital structure. Justify your choice. 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 cont.) Debt Ratio Enter any number in the edit fields and then continue to the next