PROB 1 Alternative I: $ 2 million in bonds, 15% coupon; $ 3 million common stock, $ 50 nominal per share; preferred stock of $ 1 million, for 4%. Alternative II: $ 3 million in bonds, 14% coupon; $ 1 million common stock, $ 50 nominal per share; $ 2 million in preferred stock, 5% share. If the tax rate is 40%, determine:  EBIT level indifference level!  If the target EBIT is above $ 1,500,000. specify alternative with the highest EPS! PROB 2 The company considers two alternative capital structures company. Alternative A of the $ 6,000,000 negotiation, 14% interest, preferred stock of $ 2,000,000 with dividends 6% preferred, and $ 4,000,000 common stock with price of $ 20 per sheet. Alternative B negotiations (11% interest) of $ 4,000,000 and common stock @ $ 20 an amount of $ 8,000,000. If the tax rate is 25%, calculate EBIT Indifference Point and EPS!