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Business, 27.03.2020 00:01 Uwa

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 comma 000 and $ 60 comma 000 EBIT: (Round to the nearest dollar. Round the EPS to the nearest cent.) Structure A EBIT $ 50,000 Less: Interest $ 14,784 Net profits before taxes $ 35,216 Less: Taxes $ 7,395 Net profit after taxes $ 27,821 EPS (4,200 shares) $ 6.62 (Round to the nearest dollar. Round the EPS to the nearest cent.) Structure A EBIT $ 60,000 Less: Interest $ 14,784 Net profits before taxes $ 45,216 Less: Taxes $ 9,495 Net profit after taxes $ 35,721 EPS (4,200 shares) $ 8.50 (Round to the nearest dollar. Round the EPS to the nearest cent.) Structure B EBIT $ 50,000 Less: Interest $ 31,488 Net profits before taxes $ 18,512 Less: Taxes $ 3,888 Net profit after taxes $ 14,624 EPS (2,100 shares) $ 6.96 (Round to the nearest dollar. Round the EPS to the nearest cent.) Structure B EBIT $ 60,000 Less: Interest $ 31,488 Net profits before taxes $ 28,512 Less: Taxes $ 5,988 Net profit after taxes $ 22,524 EPS (2,100 shares) $ 10.73 The financial breakeven point for structure A is $ nothing. (Round to the nearest dollar.)

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