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NFT Inc. expects to sell 2,000 units of its smart chairs each year. The price is $600 per unit and the variable production cost is

NFT Inc. expects to sell 2,000 units of its smart chairs each year. The price is $600 per unit and the variable production cost is $250 per unit. The annual fixed cost of production is $650,000. NFT currently finances its operation with $80,000 perpetual debts that pay annual coupons of 10% and 20,000 outstanding common shares that are trading at $15. Its tax rate is 30%. a) Calculate the EBIT and EPS. b) Calculate the EBIT and EPS if sales quantity decreased to 1,800 units. c) Calculate the EBIT and EPS if sales quantity increased to 2,200 units. d) Calculate the degree of operating leverage (DOL). e) Calculate the degree of total leverage (DTL = %EPS / %Sales). f) Calculate the degree of financial leverage (DFL). g) Assume NFT issues $30,000 new perpetual debts (that also pay 10% annual coupon) to buy back common shares (at current price of $15 per share). Redo part a) to part f).

PLEASE DO QUESTION (g) ONLY

Please keep at least 2 decimal points for dollar amounts and at least 4 significant digits for rates.

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