7) Mrs. Swift is in the football business. She currently sells 800,00 footballs a year at $9 each. Her variable cost to produce the footballs is $5 each. She has $1.55 million in fixed costs. Her Total Asset Turnover ratio is 7 , and 25 percent of her assets are financed with debt that has a 10% interest rate, with the balance financed by common stock at $10 par value per share. The tax rate is 25 percent. Her business partner, Mr. Kelce, says Mrs. Swift should reduce her price to $6.75 per football and increase her sales volume by 50%. Fixed and variable costs would remain constant. Her Asset Turnover ratio would rise to 9. It would also increase her debt to assets ratio to 50 percent, with the rest in common stock. This would cause the interest rate on all of the debt to be higher by 2 percentage points, but the par for common stock would remain the same. a. Compute EPS for the Swift plan. b. Compute EPS for the Kelce plan. c. Based on EPS, which is preferred? Why