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:
Retention Rates
The percentage of customers or users who continue to use a service or product over a specific period, indicating loyalty or satisfaction.
Manufacturing Expenses
Manufacturing Expenses are costs directly related to the production of goods, including raw materials, labor, and overhead expenses involved in the manufacturing process.
Health Care Costs
Expenses related to medical care, including the cost of procedures, services, drugs, and devices necessary for the treatment and well-being of individuals.
Corporate Social Responsibility
A business approach that contributes to sustainable development by delivering economic, social, and environmental benefits for all stakeholders.
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