Capital Structure analysis

I need the following assignment completed no later than Thursday July 14, 2011 at 3:00 p.m. Pacific Standard Time. 

Part A:

Various capital structures: Charter Enterprises currently has $1 million in total

assets and is totally equity-financed. It is contemplating a change in its capital structure.

Compute the amount of debt and equity that would be outstanding if the firm

were to shift to each of the following debt ratios: 10%, 20%, 30%, 40%, 50%,

60%, and 90%. (Note: The amount of total assets would not change.) Is there a

limit to the debt ratio’s value?

EPS and optimal debt ratio: Williams Glassware has estimated, at various debt

ratios, the expected earnings per share and the standard deviation of the earnings

per share as shown in the following table.

Debt ratio                   Earnings per share (EPS)                   Standard deviation of EPS

0%                               $2.30                                                   $1.15

20                                3.00                                                       1.80

40                                3.50                                                      2.80

60                                3.95                                                       3.95

80                                3.80                                                       5.53

a. Estimate the optimal debt ratio on the basis of the relationship between earnings

per share and the debt ratio. You will probably find it helpful to graph the

relationship.

b. Graph the relationship between the coefficient of variation and the debt ratio.

Label the areas associated with business risk and financial risk.

Part B:

Explain in 500 words how the global investment banking process has assisted Walt Disney. (Please include references).