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Integrative-Optimal capital structure Medallion Cooling Systems, Inc., has total assets of ( $ 9,100,000 ), EBIT of ( $ 2,050,000 ), and preferred dividends of

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Integrative-Optimal capital structure Medallion Cooling Systems, Inc., has total assets of \\( \\$ 9,100,000 \\), EBIT of \\( \\$ 2,050,000 \\), and preferred dividends of \\( \\$ 205,000 \\) 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: a. Calculate earnings per share for each level of indebtedness. b. Use the equation \\( P_{0}=\\mathrm{EPS} / r_{s} \\) 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 cent.)

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