-2. The degree of financial leverane for all three methods after expansion Assume sales of 56.9 million for this question (Round your answers to 2 decimal places.) Degree of Financial Leverage 100% Debt 100% Equy 50% Debt 50% Equity d. Compute EPS under all three methods of financing the expansion at $6.9 million in sales first year) and $10.9 million in sales (last year). (Round your answers to 2 decimal places.) Earnings per Share First Year Last Year 100% Debt 100% Equity 50% Debit & 50% Equity Delsing Canning Company is considering an expansion of its facilities. Its current income statement is as follows Sales Variable costs (ses of sales) Fixed costs Earnings before interest and taxes (ET) Interest (10% cost) Farning before taxes (ET) Tax (50%) Farnings ter taxes (LAT) Shares of common stock Earnings per share 55.900.000 2.950,000 1,190,000 $1,000,000 10,000 $ 0, 205,000 $ $76,000 299.00 The company is currently financed with 50 percent debtond 50 percent equity common stock par value of 10). In order to expand the facilities, M. Delsing estimates a need for $2.9 million in additional financing His Investment banker has told out three plans for him to consider 1. Sell $2.9 million of debt at 11 percent 2 Sell $2.9 million of common stock at $25 per share. 3. Sell $145 million of debt at 10 percent and $145 million of common stock at $40 per share Vartable costs are expected to stay at 50 percent of sales, while fixed expenses will increase to $2.390.000 per year. Delsing is not sure how much this expansion will add to sales, but he estimates that sales will rise by $1 million per year for the next five years. Delsing is interested in a thorough analysis of his expansion plans and methods of financing He would like you to analyze the following