Delsing Canning Company is considering an expansion of its facilities. Its current income statement is as follows $ 6,500,000 3,250,000 1,950,000 Sales Variable costs (50% of sales) Fixed costs Earnings before interest and taxes (EBIT) Interest (10% cost) Earnings before taxes (EBT) Tax (30%) Earnings after taxes (EAT) Shares of common stock Earnings per share 500,000 240,000 $ 560,000 350,000 1.60 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 $3.5 million in additional financing. His investment banker has laid out three plans for him to consider 1. Sell $3.5 million of debt at 11 percent. 2. Sell $3.5 million of common stock at $25 per share 3. Sell S1.75 million of debt at 10 percent and $1.75 million of common stock at $40 per shane Variable costs are expected to stay at 50 percent of sales, while fixed expenses will increase to $2,450,000 per year. Delsing is not sure how much this expansion will add to sales, but he estimates that sales will rise by $1.75 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