Dickinson Company has $12,020,000 million in assets Currently half of these assets are financed with long-term debt at 10.1 percent and half common having a par value of $8. President of analyze two refinancing plans, one with more debt one with more equity (E). The company earns a return on assets before interest and taxes of 10.1 percent. The tax rate is 40 percent. Tax loss carryover provisions apply, negative tax amounts are permissable. Under Plan D. a s3.005,000 million long-term bond would be sold at an interest rate of 12.1 percent and 375.625 shares of stock would be purchased in the market at $8 per share and retired. Under Plan E, 375,625 shares of stock would be sold at s8 per share and the s3.005.000 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.) Current Plan Plan D Plan E Earnings per share b-1. Compute the earnings per share if return on assets fell to 5.05 percent. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Current Plan Plan D Plan E Earnings per share b 2. Which plan would be most tavorable if return on assets fell to 5.05 percent? Consider the current plan and the two new plans Type here to search