I need help preparing an EBIT/EPS graph. Please see the attachment for further information.
.....Lewis believes that the current capital structure, which contains 10% debt and 90% equity, may lack adequate financial leverage. To evaluate the firm's capital structure, Lewis has gathered the data summarized in the following table on the current capital structure (10% debt ratio) and two alternative capital structures?A (30% debt ratio) and B (50% debt ratio)?that he would like to consider.
Lewis expects the firm's earnings before interest and taxes (EBIT) to remain at its current level of $1,200,000. The firm has a 40% tax rate.© BrainMass Inc. brainmass.com June 3, 2020, 9:12 pm ad1c9bdddf
The solution explains how to construct a EBIT-EPS Graph.