Political Science homework help. P11-10 Northwestern Savings and Loan has a current capitalstructure consisting of $150,000 of 12% (annual interest) debt and 2,000 shares of common stock. The firm pays taxes at the rate of 32%.a. Using EBIT values of $120,000 and $180,000, determine the associated earnings per share (EPS).b. Using $120,000 of EBIT as a base, calculate the degree of financial leverage (DFL).c. Rework parts a and b assuming that the firm has $100,000 of 12% (annual interest) debt and 3,000 shares of common stock.
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