Suppose you are working as a Risk management specialist for Bata Shoe. The top management of Bata has requested you to prepare Capital Structure Scenarios for Bata. Bata has no debt or preferred stock. The management is considering a restructuring for next year that would involve taking debt from three separate banks and using the proceeds to buy back some of the outstanding equity. The interest rate of this debt would be 10 per cent. The value of first debt is $ 1 million; the second debt is $1500, 000, third debt 1.5 million. This new debt would be used to purchase existing shares. The current market price of Batas Share is $20, which is expected to become $22 in next month. Currently, the firms assets have a market value of $8 million, and there are 400,000 shares outstanding. For this assignment, you have to prepare the current and expansion scenario. Under the expansion scenario, the EBIT is $1.5 million. After the restructuring, the share price will be $20. Compared to the expansion scenario, in the current scenario, EBIT falls by $500,000. You can show the scenario calculation through EPS.