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:
Behavioral Targeting
A data-collection method that utilizes a variety of technologies to anonymously track and compile individual consumer behaviors.
Competitive Intelligence
The gathering and analysis ofinformation about competitors, market trends, and the business environment to support strategic decision making.
Distributors
Entities involved in the process of making products available for consumption by distributing them from manufacturers to the final point of sale.
Suppliers
Suppliers are entities that provide goods or services to another company, playing a crucial role in the supply chain by affecting the quality and availability of products offered.
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