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Please help me with all parts.Thank you. Integrative-Optimal capital structure Medallion Cooling Systems, has total assets of $10,900,000, EBIT of $2,000,000 and preferred dividends of

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Please help me with all parts.Thank you.

Integrative-Optimal capital structure Medallion Cooling Systems, has total assets of $10,900,000, EBIT of $2,000,000 and preferred dividends of $204,000 and is taxed at a rate of 40%. In an effort to determine the optimal capital structure, the firm has assembled data on the cost of debt, the number of shares of common stock for various levels of indebtedness, and the overall required return on investment Capital structure debt ratio Number of common stock shares 199,000 175,000 139,000 108,000 85,000 Cost of debt, rj Required return, rs 11.8% 13.1 14.1 15.8 19.8 0% 0% 30 45 60 8.1 9.3 11.9 14.9 a. Calculate earnings per share for each level of indebtedness. b. Use the equation Po EPS/rs and the earnings per share calculated in part (a) to calculate a price per share for each level of ndebtedness c. Choose the optimal capital structure. Justify your choice

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