Answer the following questions based on the information provided in the table Plan 1 Plan 2 Interest Expense 30,000 55000 Preferred dividends 2,000 4,000 Common shares outstanding 150,000 150,000 a. What is the degree of financial leverage at a base level EBIT of $120,000 for both financing plans? The firm has a 40 percent tax rate. b. What is the EPS for both Financing Plan 1 and Plan 2, if the firm projects EBIT of $250,000 and has a tax rate of 40 percent