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Please answer all parts a-c thank you!! Degree of financial leverage Northwestern Savings and Loan has a current capital structure consisting of $300,000 of 18%

image text in transcribedPlease answer all parts a-c thank you!!

Degree of financial leverage Northwestern Savings and Loan has a current capital structure consisting of $300,000 of 18% (annual interest) debt and 2,000 shares of common stock. The firm pays taxes at the rate of 35%. Using EBIT values of $75,000 and $117,000, determine the associated earnings per share (EPS). Using $75,000 of EBIT as a base, calculate the degree of financial leverage (DFL). Rework parts a and b assuming that the firm has $103,000 of 18% (annual interest) debt and 3,000 shares of common stock. Calculate the EPS for EBIT value of $75,000 below: (Round to the nearest dollar except for the EPS which should be rounded to the nearest cent.)

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