b$-3.$ Compute the earnings per share if return on assets increased to $15$ percent.

Note: Round your answers to $2$ decimal places.

b$-4.$ Which plan would be most favorable if return on assets increased to $15$ percent? Consider the current plan and the two new plans.

multiple choice $2$

Plan D Correct

Current Plan

Plan E

c$-1.$ If the market price for common stock rose to $$12$ before the restructuring, compute the earnings per share. Continue to assume that $$3$ million in debt will be used to retire stock in Plan D and $$3$ million of new equity will be sold to retire debt in Plan E$.$ Also assume that return on assets is $10$ percent.

Note: Round your answers to $2$ decimal places.

c$-2.$ If the market price for common stock rose to $$12$ before the restructuring, which plan would then be most attractive?

multiple choice $3$

Plan D

Plan E

Current Plan Incorrect