Delsing Canning Company is considering an expansion of its facilities. Its current income statement is as follows: 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 $2.8 million in additional financing. His investment banker has laid out three plans for him to consider: 1. Sell $2.8 million of debt of 10 percent, 2. Sell $2.8 million of common stock $20 per share, 3. Sell $1.40 million of debt at 9 percent and $1.40 million of common stock at $25 per share. Variable costs are expected to stay at 50 percent of sales, while fixed expenses will increase to $2,380,000 per year. Delsing is not sure how much this expansion will add to sales, but he estimates that sales will rise by $1.40 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: 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.) Before Expansion? After Expansion? B. The degree of operating leverage before and after expansion. Assume sales of $5.8 million before expansion and $6.8 million after expansion. Use the formula DOL = (S - TVC)/(S - TVC - FC). (Round your answers to 2 decimal places.) Before Expansion? After Expansion ? C. The degree of financial average before expansion? D. The degree of financial leverage for all three methods after expansion. Assume sales of $6-8 million for this question. 100% Debt, 100% Equity. AND 50% Debt and 50% Equity? E. Compute EPS under all three methods of financing the expansion at $6.8 million in sales (first year) and $10.8 million in sales (last year). (Round your answers to 2 decimal places.) EPS First Year & EPS Last Year at 100% Debt, 100% Equity, 50% Debt and 50% Equity