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P 1 3 - 1 3 EBIT - EPS and preferred stock Litho - Print is considering two possible capital struc. tures, A and B

P13-13 EBIT-EPS and preferred stock Litho-Print is considering two possible capital struc. tures, A and B, shown in the following table. Assume a 21% tax rate.
\table[[Source of capital,Structure A,Structure B],[Long-term debt,\table[[$75,000 at 16%
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