The cost of debt at different debt levels : Use information in 3 below: Amount Borrowed $0 $250,000 $500,000 $750,000 $1,000,000 D/Capital Ratio D/E Bond Ratio Rating rd - AA 8.0% A 9.0% BBB 11.5% BB 14.0% (3) Assume that shares could be repurchased at the current market price of $25 per share. Calculate CD's expected EPS and TIE at debt levels of $0, $250,000, $500,000, $750,000, and $1,000,000. How many shares would remain after recapitalization under each scenario? Sales (last year) Variable costs as a % of sales Fixed costs Total capital Shares outstanding Current stock price BVPS Tax rate TRF RPM Bu WACC = rs $1,100,000 60% $40,000 $2,000,000 80,000 $25 $25 25% 7.50% 6.00% 1.25 15%