Wandel Inc. has $5,000,000 outstanding of 8 percent preferred stock; the company has a 40 percent tax rate. What is the after-tax cost of the preferred stock?     and if  Wandel Inc. has forecasted sales of $300,000.   The firm's fixed operating costs total $75,000 and its variable operating costs are equal to 70% of this sales level. The company needs to pay $12,000 in interest each period. Its tax rate is 40% and it has 10,000 shares.  a)   Compute the earnings before interest and taxes (EBIT) for a sales level of $300,000 b)   Compute Earnings after taxes and compute the EPS for that sales level.

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A: Note: This post contains several questions. The first three have been solved below.