Question 4 (Q4) The impact of leverage on EPS You use sensitivity analysis to examine the effect on earnings per share (EPS) of issuing $5 billion of new debt and using the proceeds to repurchase existing shares or pay a special dividend. Comparing the worst against the best-case scenario as shown in your analysis, also considering your conclusions in Q3 and Q2, do you recommend Ndivia should go with share repurchase or dividend in a leverage recapitalization, why? Tips: 1. Complete the tables in Excel spreadsheet Q4 EBIT vs EPS. 2. Paste the graph in appendix. 3. Show your calculations in a MS Word document. 4. Provide a succinct discussion based on your analysis. Use this table to support your analyses Corporate Tax Rate Personal tax rate Current Share Price Num Shares Outstanding (see Final tips; in millions) Equity Beta rf (risk free rate = 20-yr treasury rate)| Risk premium (= rm - rf)| rD (yield on AAA corporate debt)| 25% na Divident payout ratio 45.98%