Frankline Coin,Inc.is considering two capital structures.The key information follows.Assume a 40 percent tax rate and expected EBIT of $50,000. 
(a)Calculate two EBIT-EPS coordinates for each of the structures.
(b)Indicate over what EBIT range,if any,each structure is preferred.
Definitions:
Persuasive Reason
An argument or factor presented to convince or influence others to support a decision, action, or change in belief or behavior.
Conglomerate Mergers
Mergers between companies that operate in entirely different industries.
Anticompetitive Effects
Consequences or actions that reduce competition in a market, often associated with monopolistic practices and regulatory scrutiny.
Financial Mergers
Financial mergers involve the combination of two or more companies in the financial sector to create a new entity, aiming to enhance financial strength and market presence.
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