Dickinson Company has $11,900,000 milion in assets: Currently haif of these assets are financed with iong-term debt at 9.5 percent and haif with common stock having a par value of \$8. Ms. Park. 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 taxes of 9.5 percent. The tax rate is 40 percent. Tax loss carryover provisions apply, so negative tax amounts are permissable Under Plan D, a $2,975,000 million long-term bond would be sold at an interest rate of 11,5 percent and 371,875 shares of stock would be purchased in the market at $8 per share and retired. Under Plan E, 371,875 shares of stock would be sold at $8 per share and the $2,975,000 in proceeds would be used to reduce iongterm debt o. Compute earnings per share considenng the current plan and the two new plans: Note: Round your onswers to 2 decimal pleces. Answer is complete but not entirely correct. b-1. Compute the earnings per share if return on assets fell to 4.75 percent. Note: Negotive omounts should be Indicated by o minus sign. Round your answers to 2 decimal places. Leave no celis biank be certain to enter 0 wherever required. b-3. Compute the earnings per share if return on assets increased to 14.5 percent. Note: Round your onswers to 2 decimal places. Answer is complete but not entirely correct. b-4. Which plan would be most favorable if return on assets increased to 14.5 percent? Consider the current plan and the two new plans. Current Plan Pian D Pian E c-1, If the market price for common stock rose to $10 before the restructuring, compute the earnings per share continue to assume that 52,975,000 milion in debt will be used to retire stock in Plan D and $2,975,000 mulion of new equity wili be sola to retre debt in Plan E Also assume that return on assets is 9.5 percent Note: Round your onswers to 2 decimal pleces