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SVO ET-LP3 and preferred stock Litho Print is considering two pooble capital structuren, A and B shown in the tohowing the one to com Source

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SVO ET-LP3 and preferred stock Litho Print is considering two pooble capital structuren, A and B shown in the tohowing the one to com Source of capital Structure A Structures Long-term debit $70.000 at 15.5% Coupon $51.000 125 coupon rate Preferred stock $12.000 with an annual dividend of 17 7517.000 with an annual dividend of 17 Common stock 8.100 Shares 10.100 shares Calculate two EBIT-EPS coordinates for each of the structures by selecting any two EBIT values and finang their associated EPS values b. Graph the two capital structures on the same set of EBIT-EPS aves c. Discuss the loverage and risk associated with each of the structures d. Over what range of EBIT in each structure preferred? .. Which structure do you recommend it the firm expects its EBIT to be greater than $55.0002 Explan. a. Calculate two EBIT-EPS coordinates for each of the structures by selecting any two GBIT values and finding the associated EPS values Complete the tatilos Below using $30.000 and $50,000 EDIT: (Round to the nearest dollar. Round the EPS- to the decimal places) Structure A $ 30,000 EBIT S Las Interest Net profits before taxes S Taxes S S Net profit after the Les Preferred dividends Earnings available for common shareholders EPS (8.100 shares) S S

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