A company is planning to invest $12,000,000 in an expansion program, which is expected to increase income before interest and taxes by $2,200,000. The company is currently earning $2.80 per share on 1,000,000 shares of common stock outstanding. The capital structure prior to the investment is provided below. Debt Equity Total S 25,000,000 75,000,000 100,000,000 The expansion can be financed by sale of 300,000 shares at $40 net each or by issuing long term debt at an 8% interest cost. The firm's recent income statement was as follows. Sales Variable Costs Fixed Costs Income Before Interest and Taxes Interest Expense Income Before Income Taxes Income Tax Expense (30%) Net Income S 100,000,000 ) 65,000,000) 29,000,000) 6,000,000 2,000,000 4,000,000 1,200,000 S 2,800,000