Edsel Research Labs has $28.60 milion in assets. Currently half of these assets are financed with long-term debt at 7 percent and half with common stock having a par value of $10. Ms. Edsel, the 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 7 percent. The tax rate is 40 percent. Under Plan D, a $7.15 million long-term bond would be sold at an interest rate of 10 percent and 715,000 shares of stock would be purchased in the market at $10 per share and retired. Under Plan E,715,000 shares of stock would be sold at $10 per share and the $7,150.000 in proceeds would be used to reduce long-term debt. a-1. Compute eamings per share considering the current plan and the two new plans. Note: Round your answers to 2 decimal places. a-2. Which plan(s) would produce the highest EPS? Note that due to tax loss carry-forwards and carry-backs, taxes can be a negative number. The Current Plan and Plan E P P an D a-2. Which plan(s) would produce the highest EPS? Note that due to tax loss carry-forwards and carry-backs, taxes can be a negative number. The Current Plan and Plan E Plan D Plan E Current Plan b. Which plan would be most favorable if return on assets increased to 15 percent? Compare the current plan and the two new plans. Current Plan Plan D Pion E Current Plan and Ptan D c. Astuming return on assets is back to the original 7 percent, but the interest rate on thew debt in Plan D is 6 percent, which of the thee plans will produce the highest EPS? c. Assuming return on assets is back to the original 7 percent, but the interest rate on new debt in Plan D is 6 percent, which of the three plans will produce the highest EPS? Plan D The plans Current and E Plan E The Plan Current and D