Can you please help with section D? Thank you!

Delsing Canning Company is considering an expansion of its facilities. Its current income statement is as follows: $ 6,800,000 3,400,000 1,980,000 $ 1,420,000 Sales Variable costs (50% of sales) Fixed costs Earnings before interest and taxes (EBIT) Interest (10% cost) Earnings before taxes (EBT) Tax (30%) 560,000 860,000 258,000 Earnings after taxes (EAT) 24 602,000 Shares of common stock 380,000 24 Earnings per share 1.58 The company is currently financed with 50 percent debt and 50 percent equity (common stock, par value of $10). In order to expand the facilities, Mr. Delsing estimates a need for $3.8 million in additional financing. His investment banker has laid out three plans for him to consider: 1. Sell $3.8 million of debt at 14 percent. 2. Sell $3.8 million of common stock at $20 per share. 3. Sell $1.90 million of debt at 13 percent and $1.90 million of common stock at $25 per share. Variable costs are expected sure how much this expansion will add to sales, but he estimates that sales will rise by $1 million per year for the next five years. Delsing is interested in a thorough analysis of his expansion plans and methods of financing.He would like you to analyze the following: to $2,480,000 per year. Delsing is stay at 50 percent of sales, while fixed expenses will increas a. The break-even point for operating expenses before and after expansion (in sales dollars). (Enter your answers in dollars not in millions, i.e, $1,234,567.) Break-Even Point Before expansion 3,960,000 After expansion 4,960,000 b. The degree of operating leverage before and after expansion. Assume sales of $6.8 million before expansion and $7.8 million after expansion. Use the formula: DOL = (S- TVC) / (S- TVC - FC). (Round your answers to 2 decimal places.) Degree of Operating Leverage Before expansion 2.39 After expansion 2.75 c-1. The degree of financial leverage before expansion. (Round your answer to 2 decimal places.) Degree of financial leverage 1.65 c-2. The degree of financial leverage for all three methods after expansion. Assume sales of $7.8 million for this question. (Round your answers to 2 decimal places.) Degree of Financial Leverage 100% Debt 4.33 100% Equity 1.65 50% Debt & 50% Equity 2.32 d. Compute EPS under all three methods of financing the expansion at $7.8 million in sales (first year) and $10.7 million in sales (last year). (Round your answers to 2 decimal places.) Earnings per Share First Year Last Year 0.60 $ 100% Debt 3.28 100% Equity 2.84 50% Debt & 50% Equity 3.17