ZigLag corporation is a successful medium sized E-commerce company. Its current capital structure is made up of $400,000 of 15% (annual interest) Debt, and 15,000 shares of common stock. The firm pays preferred dividend of %20,000 in total and taxes at the rate of 35%

1. What is Ziglags EPS if the companys EBIT for the current year is $150,000?

2. If the EBIT increase to $200,000 what is the companys EPS

3. What is the degree of financial leverage of the company?