OTO Inc. expects to sell 45,000 units of its product each year. The price is $65 per unit and the variable production cost is $36 per unit. The annual fixed cost of production is $420,000. OTO currently finances its operation with $800,000 perpetual debts that pay annual coupons of 12% and 30,000 outstanding common shares. Its tax rate is 40%. a) Calculate the EBIT and EPS of OTO. b) Calculate OTOs DOL (you may assume sales quantity increases 1% or any %, the answer will be the same). c) Calculate OTOs DFL. d) Calculate OTOs DTL (DTL = Degree of Total Leverage = %EPS / %Sales). e) Assume OTO issues 5,000 new common stocks to payoff $300,000 perpetual debt. What is the EPS under this new capital structure? What are the breakeven EBIT and the breakeven sales quantity of the current and this new capital structure?