Medallion Cooling Systems has total assets of $$10,000,000,$ EBIT of $$2,000,000$ and preferred 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 various levels of indebtedness, and overall required return on investment :Capital structure debt ratioCost of debtNumber of common stock sharesRequired Return$0\%0\%200,00012\%158170,00013309140,000144512110,00016601580,00020$ a$.$ Calculate earnings per share for each level of indebtedness.b$.$ Use Equation $13\mathrm{.}12$ and the earnings per share calculated in part a to calculate a price per share for each level indebtedness.c$.$ Choose the optimal capital structure. Justify your choice.