Medallion Cooling Systems, Inc., has total assets of $9,200,000, EBIT of $2,000,000, and preferred dividends of $199,000 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:

Calculate the EPS and Price per share below: (Round to the nearest DOLLAR for income statement accounts; Round the EPS and Price to the nearest CENT.)

Debt Ratio	0%	30%	60%
Cost of debt	0%	9.30%	14.80%
EBIT
Less: Interest
EBT
Taxes @40%
Net profit
Less: Preferred Div.
EACS
# shares outstanding	197000	142000	79000
EPS
Cost of equity, rs	12.20%	13.90%	19.90%
Price Per share (P0 = EPS / rs)

The optimal capital structure would be -------, read surrounding text. % debt and , read surrounding text. % equity because this is the debt/equity mix that maximizes the price of the common stock.