n Integrative Optimal capital structure Medallion Cooling Systems Inc has total assets of $9 800,000, EBIT of $2,050.000, and preferred dividends of S200 000 and is taxed at a rate of 40% an effort to determine the optimal capital structure, the frm has pn assembled data on the cost of debt, the number of shares of common stock for vanious levels of indebtedness, and the overall required ut return on investment Capital structure debt ratio Number of common Cost of debt. r Required return, r, es 119% 196 000 172.000 137 000 112 000 81000 0% 15 30 45 60 0% 8.3 9 2 12.1 148 13 3 14.1 159 20 3 a. Calculate eamings per share for each level of indebtedness b. Use the equation Po" EPS /rs and the earnings per share calculated in part (a) to calculate a pnce per share for each level of indebtedness c. Choose the optimal capital structure Justify your choice