our boss has asked you to help him understand the implications of increasing the leverage in the company's capeal structure. He has given you the following financial information: Economic Conditions Recession Normal Boom Company's Probability EBIT $500,000 109 $900,000 6094 $1,600,000 309 Outstanding currently are 1,000,000 shares of stock and no debt The price of the shares is $15.00 share The company can issue up to 10,000 5% coupon bonds ara face value of $1,000 per bead The bonds pay interest semi-annually The company's tax rate is 21% 22. What is the EPS in the Boom economic conditions if the company issues all the bends and uses the entire proceeds to repuchase stock at $15.00 share? A $2.61/share B. $1.60 share C. $1.10 share D. 54.80/share E $3.30 share 23. What is the break even point for EBIT? A $750,000 B. $1,500,000 C $3,000,000 D. $250.000 E $333,333