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v EBIT-EPS and preferred stock Litho-Print is considere two posible capital strctures And B. shown in the following the Assume 40% Source of capital Structure
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EBIT-EPS and preferred stock Litho-Print is considere two posible capital strctures And B. shown in the following the Assume 40% Source of capital Structure Structure Long-term debit $74,000 1525 coupon rate $49000 142 coupont Preferred stock $12000 with an annual dividend of 1789 312.000 wnus dividend of 17.0% Common stock 8.200 shares 10.00 hores a. Calculate two EBITEPS coordinates for each of the structures by selecting any two el values and finding the EPS b. Graph the two ospital structures on the same set of EBIT EPS se c. Discuss the leverage and sociated with each of the structure d. Over what tange of EBIT is each structure preferred? e. Which structure do you recommend the firm expects its EBIT to be greater than 545.000 Complete the tables below using 550 000 and $50.000 EBT Round to the rest out Round the EPS to the decimal places Structure EBIT 5 30,000 Less Interest $ Net profits before te $ Les Taxes Net profitanter taxes $ Loss Preferred amidonds Earnings available for common shareholders 5 EPS 8200 shares) Step by Step Solution
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