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Integrative-Optimal capital structure Medallion Cooling Systems, Inc., has total assets of $10,100,000, EBIT of $1,960,000, and preferred dividends of $197,000 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 Number of common debt ratio Cost of debt, I'd stock shares Required return, is 0% 0% 198,000 11.9% 15 8.1 171,000 13.1 30 9.3 141.000 14.1 45 12.3 107.000 16.1 60 15.2 81,000 19.9 a. Calculate earnings per share for each level of indebtedness. h Ilse the equation . - EPSr and the earninas nor share calculated in nart (al to calculato a orico por share for each level of indebtedness a. Calculate earnings per share for each level of indebtedness. Calculate the EPS below. (Round to the nearest dollar. Round the EPS to the nearest cent.) Debt Ratio 0% EBIT $ 1,960,000 Less: Interest $ EBT $ $ Taxes @40% Net profit Less: Preferred dividends $ Profits available to common stockholders $ # shares outstanding 198.000 EPS $ 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 indebtedness. c. Choose the optimal capital structure. Justify your choice