Delsing Canning Company is considering an expansion of its facilities. Its current income statement is as follows: Sales Variable costs (50% of sales) Fixed costs Earnings before interest and taxes (EBIT) Interest (10% cost) Earnings before taxes (EBT) Tax (35%) Earnings after taxes (EAT) Shares of common stock Earnings per share $5,400,000 2,700,000 1,840,000 $ 860,000 280,000 $ 580,000 203,000 $ 377,000 240,000 $ 1.57 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 $2.4 million in additional financing. His investment banker has laid out three plans for him to consider: 1. Sell $2.4 million of debt at 12 percent. 2. Sell $2.4 million of common stock at $15 per share. 3. Sell $1.20 million of debt at 11 percent and $1.20 million of common stock at $20 per share. Variable costs are expected to stay at 50 percent of sales, while fixed expenses will increase to $2,340,000 per year. Delsing is not 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: d. Compute EPS under all three methods of financing the expansion at $6.4 million in sales (first year) and $10.4 million in sales (last year). (Round your answers to 2 decimal places.) Earnings per Share First Year Last Year 100% Debt 100% Equity 50% Debt & 50% Equity