DataCheck is considering 2 capital structures.The key informationis shown in the

DataCheck is considering 2 capital structures.The key informationis shown in the following table. Assume 40% tax rate.Source of capital Structure A Structure B. Long-term debt $100000 at 16% coupon rate $200000 at 17% coupon rate. Common Stock 4000 shares 2000 sharesa. Calculate 2 EBIT-EPS coordinates foreach of the structures by using $50000 and $60000 EBIT and finding their associated EPS values. Calculate the Financial Break Even point for each of the structures. b. Plot the two capital structures on a set of EBIT-EPS axes.c. Indicate over what EBIT range if any each structure is preferred.d. Discuss the leverage and risk aspects of each structure.e. If the firm is fairly certain that its EBIT will exceed $75000 which structure would you recommend? Why?