financial leverage. given the results of the break-even analysis, natural bodyworks has decided to produce the ab stretcher and forecasts sales of 4,000 units, with an expected noi of $480,000. they face a 21% tax rate. the managers now face the financing decision. the project has initial costs of $2,000,000, which must be raised by issuing financial securities. they can raise the entire amount by selling 40,000 shares of stock at $50 per share. they can raise $800,000 via bonds, and the remaining $1,200,000 by selling 24,000 shares of stock. the bonds would require annual interest payments of $80,000. what is the eps of the preferred capital structure?
