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 (358) Earnings after taxes (EAT) Shares of common stock Earnings per share $6,300,000 3,150,000 1,930,000 $1,220,000 460,000 $ 760,000 266,000 $ 494,000 330,000 1.50 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 $3.3 million in additional financing. His investment banker has laid out three plans for him to consider: 1. Sell $3.3 million of debt at 9 percent. 2. Sell $3.3 million of common stock at $15 per share. 3. Sell $1.65 million of debt at 8 percent and $1.65 million of common stock at $20 per share.