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a. Calculate two EBIT-EPS coordinates for each of the structures by selecting any two EBIT
values and finding their associated EPS values. b. Plot the two capital structures on a set of
EBIT-EPS axes. c. Indicate over what EBIT range, if any, each structure is preferred. d. Discuss
the leverage and risk aspects of each structure. e. If the firm is fairly certain that its EBIT will
exceed $76,000, which structure would you recommend? Why? a. Calculate two EBIT-EPS
coordinates for each of the structures by selecting any two EBIT values and finding their
associated EPS values. Complete the tables below using $50,000 and $60,000 EBIT: (Round to
the nearest doilar. Round the EPS to the nearest cent.)

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a. Calculate two EBIT-EPS coordinates for each of the structures by s.pdf

  • 1. a. Calculate two EBIT-EPS coordinates for each of the structures by selecting any two EBIT values and finding their associated EPS values. b. Plot the two capital structures on a set of EBIT-EPS axes. c. Indicate over what EBIT range, if any, each structure is preferred. d. Discuss the leverage and risk aspects of each structure. e. If the firm is fairly certain that its EBIT will exceed $76,000, which structure would you recommend? Why? a. Calculate two EBIT-EPS coordinates for each of the structures by selecting any two EBIT values and finding their associated EPS values. Complete the tables below using $50,000 and $60,000 EBIT: (Round to the nearest doilar. Round the EPS to the nearest cent.)