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 $2.1 million in additional financing. His investment banker has laid out three plans for him to consider: 1. Sell $2.1 million of debt at 9 percent. 2. Sell $2.1 million of common stock at $15 per share. 3. Sell $1.05 million of debt at 10 percent and $1.05 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, 310,000 per year. Delsing is not sure how much this expansion will add to sales, but he estimates that sales will rise by $1.05 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. he break-even point for operating expenses before and after expansion (in sales dollars). b. The degree of operating leverage before and after expansion. Assume sales of $5.1 million before expansion and $6.1 million after expansion. Use the formula: DOL = (S - TVC)/(S - TVC - FC). c-1. The degree of financial leverage before expansion. Degree of financial leverage c-2. The degree of financial leverage for all three methods after expansion. Assume sales of $6.1 million for this question. d. Compute EPS under all three methods of financing the expansion at $6.1 million in sales (first year) and $10.1 million in sales (last year)