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:
Hormonal Changes
Adjustments in the levels and activity of hormones in the body, which can affect physical and emotional health, commonly occurring during puberty, pregnancy, menopause, and under stress.
Life Demands
The various pressures and obligations that individuals face in their daily life, including work, family, and social responsibilities.
Body Dissatisfaction
A feeling of unhappiness or discomfort with one's body size, shape, or appearance.
Postpubertal Girls
Refers to females who have gone through puberty and have reached sexual maturity.
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