Deebo's Squeaky Wheel Bicycles has $37 million in assets. Currently, half of these assets are financed with long term debt at 7 percent interest and half with common stock having a par value of $10. Craig, the VP of finance, wishes to analyze two refinancing plans. One with more debt (Plan D) and one with more equity (Plan E). The company earns a return on assets before interest and taxes of 10 percent. The tax rate is 30 percent. Plan D: a $9.25 million long-term bond would be sold at an interest rate of 16 percent and 925,000 shares of stock would be purchased in the market at $10 per share and retired. Plan E: 925,000 shares of stock would be sold at $10 per share and the $9.25 million in proceeds would be used to reduce long term debt. a. How would each of these plans affect EPS? Consider the current plan and the two new plans. Which plan would produce the highest EPS? b. Which plan would be most favorable if ROA increased to 20 percent? Compare the current and two different plans. What has caused the plans to give different EPS numbers? c. Assuming ROA is back to the original 10 percent, but the interest rate on new debt in Plan D is only 11 percent, which of the three plans will produce the highest EPS? Why