Dickinson Company has $11.820.000 million in assets Currently half of these assets are financed with long term debt at 9.1 percent and half with common stock having a par value of $8. Ms. Smith Vice President of Finance, wishes to analyze two refinancing plans, one with more debt (D) and one with more equity (E) The company earns a return on assets before interest and takes of 91 percent The tax rate is 10 percent Tax loss carryover provisions apply, so negative tax amounts are permissable. Under Plan D. a $2,955.000 million long-term bond would be sold at an interest rate of 11 percent and 369.375 shares of stock would be purchased in the market at $8 per share and retired Under Plan E, 369,375 shares of stock would be sold at $8 per share and the $2.955.000 in proceeds would be used to reduce long- term debt a. How would each of these plans affect earnings per share? Consider the current plan and the two new plans. (Round your answers to 2 decimal places.) Earnings per share Current Plan $ 0.4415 Plan D 0.265 Plan E 0.49 -1. Compute the earnings per share if return on assets fell to 4.55 percent. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Current Plan Plan D Plan E Eamings per share b-2. Which plan would be most favorable if return on assets fell to 4.55 percent? Consider the current plan and the two new plans. Plan E O Plan D Current Plan b-3. Compute the earnings per share if return on assets increased to 14.1 percent (Round your answers to 2 decimal places.) Current Plan Plan D Plan E Earnings per share b-4. Which plan would be most favorable if return on assets increased to 14.1 percent? Consider the current plan and the two new plans O Current Plan Plan D Plan E 61. If the market price for common stock rose to $12 before the restructuring, compute the earnings per share. Continue to assume that $2,955,000 million in debt will be used to retire stock in Plan D and $2,955,000 million of new equity will be sold to retire debt in Plan E. Also assume that return on assets is 91 percent. (Round your answers to 2 decimal places.) Current Plan Plan D Plan E Earnings per share c-2. If the market price for common stock rose to $12 before the restructuring, which plan would then be most attractive? Plan E Plan D Current Plan