You are trying to determine the best capital structure for your firm. As such, your employer wants you to determine the capital structure that will maximize EPS. In order to do this, you are provided with the following information concerning two potential capital structures. Capital Structure A_ Capital Structure "B" Debt Preferred Equity = 25% = 10% 65% Debt = 45% Preferred = 15% Equity = 40% Interest Expense Preferred Dividends = $ 55,000 = $ 4,000 Interest Expense Preferred Dividends = $ 75,000 = $ 9,000 Common Shares Outstanding Common Shares Outstanding = 12,000 = 8,000 Marginal Tax Rate = 30% Marginal Tax Rate 30% a. What is the Financial Break-even Point under Capital Structure "A"? What is the Financial Break-even Point under capital structure "B"? b. At what level of EBIT will the EPS under capital structure "A" be equal to the EPS under capital structure "B"? (Hint: Calculate the indifference point)