(a) 2,000 common shares at $50 net to the company. (b) $100,000 of 7 percent preferred stock. (c) $100,000 of 6 percent bonds. Assuming an EBIT of $125,000 for each alternative, determine the earnings be share for each financing plan. Compute the EPS indifference points for the con mon stock vs. preferred stock plan and common stock vs.bond debt plan. Discus the results. The Wellsley Glass Company sells its glass by the square foot. The price per square foot is $5 and variable costs are $3 per square foot. Fixed costs are $60,000, and the company has $100,000 worth of debt with an interest rate of 10 percent. The company is operating at 50,000 square feet. 4-7 (a) What is the degree of operating leverage? (b) What is the degree of financial leverage? (c) What is the degree of combined leverage? Corner Creations by Dana, Inc. sells two products, A and B. The price per urit is $12 for A and $8 for B. The variable cost per unit is $6 for A and $4 for B Total fixed costs on both products are $80,000. Hint: Average price per unit = (12 + 8)/2. 4-8 (a) Calculate the break-even point if these two products are sold in the same (b) Calculate the break-even point if thev are sold in tho ratie so