DeSoto Tools incorporated is planning to expand production. The expansion will cost $2,400,000, which can be financed either by bonds at an interest rate of 8 percent or by selling 48,000 shares of common stock at $50 per share. The current income statement before expansion is as follows: After the expansion, sales are expected to increase by $1,540,000 Variable costs will remain at 20 percent of sales, and fixed costs will increase to $1,358,000. The tax rate is 30 percent a. Calculate the degree of operating leverage: the degree of financial leverage, and the degree of combined leverage before expansion. (For the degree of operating leverage, use the formula: DOL =(STVCFC)(STVC). For the degree of combined leverage. use the formula DCL =(STVCFC)(STVC) These instructions apply throughout this problem) Note: Round your answers to 2 decimal places. b. Construct the income statement for the two alternative financing plans. Note: Round EPS to 2 decimal places. Enter your answers as positive values. c. Calculate the degree of operating leverage: the degree of tinancial leverage, and the degree of combined leverage, after expansion Note: Round your answers to 2 decimal places