EPS, Debt$-$to$-$Equity, Breakeven point LexMart maintains a debt$-$to$-$equity ratio of $1\mathrm{.}0$ regardless of whether the firm experiences expansion or

contraction. At the present time, LexMart has $$1,000$ par value bonds outstanding that pay $7\%$ annual interest. The firm also has $2\mathrm{.}6$ million shares of

common stock outstanding that sells for $$21$ per share.

a$.$ Based on LexMart's current annual NOP of $$23,000,000$ and its corporate tax rate of $20\%,$ what is its EPS?

b$.$ If LexMart would like to finance a $$65$ million expansion while maintaining it's current debt$-$to$-$equity ratio of $1\mathrm{.}0,$ how many bonds at $$1,000$ per bond

and shares of stock will it have to sell to pay for the expansion?

c$.$ After the expansion, what level of annual NOP will LexMart have to generate to maintain its current level of EPS?

a$.$ LexMart's current EPS is $

$($Round to three decimal places.$)$