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Business, 17.12.2019 22:31 dazesreplayy5363

Northwestern savings and loan has a current capital structure consisting of $250,000 of 16% annual interest) debt and 1,000 shares of common stock. the firm pays taxes at the rate of 35%.a. using ebit values of $75,000 and $120,000 determine the associated earnings per share (eps).b. using $75,000 of ebit as a base, calculate the degree of financial leverage (dfl).c. rework parts a and b assuming that the firm has $94,000of 16%(annual interest) debt and 2,000shares of common stock. a. calculate the eps for ebit value of $75,000below: (round to the nearest dollar except for the eps which should be rounded to the nearest cent.)ebit$less: interestnet profits before taxes$less: taxes (35%)net profit after taxes$eps (1,000 shares)$

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