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Use the following information to answer three related questions below. Ignore any tax effects. Current Cap. Structure Proposed Cap. Structure Assets $45 million $45 million

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Use the following information to answer three related questions below. Ignore any tax effects. Current Cap. Structure Proposed Cap. Structure Assets $45 million $45 million Debt $o $25 million Equity $45 million $20 million Shares Outstanding 2,000,000 1,000,000 Interest Rate on Debt 896 8% Recession Expected Expansion EBIT $5.0 million $7.0 million $9.0 million What is the break-even EBIT and EPS for these two capital structures? Select one

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