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  3. 3) paw patrol inc. is considering two different ca

3) Paw Patrol Inc. is considering two different capital structures: Structure A is a 100%...

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3) Paw Patrol Inc. is considering two different capital structures: Structure A is a 100% equity structure with 150,000 shares outstanding and a $500,000 market value Structure B is a 50/50 debt equity split with a total market value of $500,000 The rate on the debt will be 10%. Assume a tax rate of 35% and a projected EBIT of $75,000 Complete the table below on the 2 different capital structures. Structure A 75,000 Structure B 75,000 EBIT Interest Taxes Net Income EPS ROE 4) Based on the information in question 3, answer the following questions. What structure provides the better results for the company? Does including taxes in the analysis make a difference in the results? What is the primary impact of financial leverage on stockholders

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