riple D Corporation is all equity financed with total assets valued at $1 million, which are assumed constant. The corporations ordinary shares are valued at $25 each, and the firm is in the 40 percent tax bracket. The corporation wishes to analyze five possible capital structures- 0, 15, 30, 45, and 60 percent debt-equity ratios. Exhibit 1 shows the additional data which have been gathered for use in analyzing the five capital structures under consideration. Exhibit 1: Triple D Corporations alternative capital structures Capital structure debt-equity ratio Interest rate on debt 0% 0.0% 15 8.0 30 10.0 45 13.0 60 17.0 Question 1 (25 marks) (a) Calculate the amount of debt, the amount of equity, and the number of outstanding shares for each of the capital structures being considered.(5 marks) (b) Calculate the annual interest on debt under each of the capital structures being considered. (5 marks) (c) Calculate the earnings per share (EPS) associated with $150,000 and $250,000 of EBIT for each of the five capital structures. (5 marks) (d) Calculate the level of EBIT at the point of indifference. (3 marks) (e) Calculate the earnings per share for each of the capital structures. (5 marks) 4 (f) Calculate the dividend payout ratio for each of the capital structures being considered.(2 marks)