Please show work in excel. See attached for data.

1. Calculate the level of EBIT associated with each of the three levels of sales.

2. Calculate the amount of debt, the amount of equity, and the number of shares of common stock outstanding for each of the five capital structures being considered.

3.Calculatetheannualinterestonthedebtundereachofthefivecapitalstructuresbeingconsidered.(Note:Thebeforetaxcostofdebtistheinterestrateapplicabletoalldebtassociatedwiththecorrespondingdebtratio.)

Thank you!

Country Textiles Data Module 8, Activity 8.5 - Case Study Country Textiles, which has fixed operating costs of $300,000 and variable operating costs equal to 40% of sales, has made the following three sales estimates, with their probabilities noted. Sales $600,000 900,000 1,200,000 Probability 0.30 0.40 0.30 The firm wishes to analyze five possible capital structures: 0%, 15%, 30%, 45% and 60% debt ratios. The firm's total assets of $1 million are assumed to be constant. Its common stock has a book value of $25 per share, and the firm is in the 40% tax bracket. The following additional data have been gathered for use in analyzing the five capital structures under consideration. Capital Structure debt ratio 0% 15 30 45 60 Before tax cost of debt 0.0% 8.0 10.0 130 17.0 Required return 10.0% 10.5 11.6 14.0 20.0