Walton Cooling Systems Ltd. has total asset of Tk. 1,000,000, EBIT of Tk. 200,000 and preferred dividend of Tk 200,00 and is taxed at a rate of 40%. In an effort to determine the optimal capital structure, the firm has assembled data on the cost of debt, the number of shares of common stock for various levels of indebtedness and the overall required return on investment: Capital Structure Cost of Debt Ratio (%) Debt (%) % 0 0 20 S 40 60 10 No of Common stock Shares 200,00 180,00 120,00 8.000 Required rate of return (%) 8 10 12 14 8 Required: i. Calculate earnings per share for each level of indebtedness. ii. Use earning per share (part i) to calculate the price per share for each level of indebtedness ii. Choose optimal capital structure and justify your choice