me with the problem below: ABC Golf Equipment Corporation has $10 million in assets (where the market value of the assets is equal to the book value of the assets) and no debt. The companys marginal tax rate is currently 35% and has 500,000 shares outstanding. The companys earnings before interest and taxes (EBIT) are $3.88 million. The firms stock price is $27 per share and the cost of equity is 11%. The company is thinking of issuing bonds and simultaneously repurchasing a portion of its stock. If the company changes its capital structure from no debt to 25% debt based on market values, the firms cost of equity will increase to 13% because of the increased risk. The bonds can be sold at a cost of 9%. The firms earnings are not expected to grow over time. All of its earnings will be paid out as dividends. Probabilty EBIT ($) 0.05 -1 million 0.25 2.3 million 0.4 4 million 0.25 5.8 million 0.05 6.1 millio Required: Computations (use Excel). Make the computations necessary to answer the questions below. Dont forget that Mr. Hillbrandt does appreciate your step-by-step computations to guide him through the analysis. -What impact will this utilization of this debt have on the value of the company? -Whats going to be the companys EPS after the recapitalization? -Whats going to be the companys new stock price? -The $3.88 million EBIT discussed above is determined from this probability distribution. Whats the times interest earned ratio at each probability level