Joan is the finance director of H2 Corporation; a rapid growing firm specialized in fuel cell energy. The company is an all-equity firm at the moment with 150,000 common shares outstanding and zero debts. Joan is now considering the best capital structure for H2. With causal study. Juan is thinking whether to switch H2 Corporation from on all-equity firm into a leverage company with debts. Lemon Brothers, the investment bank and financial adviser to H2, has proposed a structure with 140.000 shares of stock and $2 million in debt. Information of the existing and proposed capital structure is listed in Table 2.1 below: Joan believes that earnings before interest and tax (EBIT) of the firm can be maintained at $3 million under both capital structures. However, the proposed leverage structure involves a debt financing cost (interest expenses), which equals to 12% p.a. of the debt amount. The marginal tax rate applies to H2 Corporation is 30%. Given EBIT of $3 million, compare the earnings per share (EPS) between the existing all-equity capital structure and the proposed leverage capital structure. which capital structure has higher earnings per share (EPS)? Based on EBIT-EPS analysis, identify the Break-even EBIT between the two capital structures. With your answers in (a) and (b), advise Joan whether H2 Corporation should adopt the proposed capital structure with debts. Also, explain whether the amount of Break-even EBIT will be changed if H2 falls into a higher marginal tax bracket