EPS and Debt-to-Equity, Your corporation is currently all-equity financed with 450,000 shares of common stock selling for $37 a share. Currently your firm generates $4,000,000 in BIT annually and has a 32% dividend payout ratio. Your firm's tax rate is 25%. a. What is your firm's current earnings per share and dividend per share? b. Your firm is considerind financing an expansion with a bond issue of $7,500,000 that will pay 6.2% annually in interest. If the expansion increases your firm's BIT to $6,000,000, what will be your firm's new debt-to-equity ratio, EPS, and dividend per share? c. If the expansion is instead financed with an issue of new stock, what will be your firm's new EPS and dividend per

a. Calculate the firm's current earnings per share (EPS) and dividend per share (DPS) below:(Round to the nearest dollar except for the EPS and DPS which should be rounded to the nearest cent.)

EBIT	$
Less: Interest expense
Net profits before taxes	$
Less: Taxes (25%)
Net income	$
Earnings per share (EPS) of common stock	$
Common stock dividends	$
Common stock dividend per share (DPS)	$
Common stock shares outstanding		450,000
Stock price	$	37