Exercise II.: ABC has $3 million in LT financing (100% common stock equity). Current common equity shares = 100,000 $10 million in new financing of either: - All C.S. sold at $200/share (50,000 shares) - All debt with a coupon rate of 4% All P.S. with a dividend rate of 8% Expected EBIT $1960000 . Income tax rate is 20% . Fixed expenses = $ 480000 1. Determine the Degree of Financial Leverage. 2. Determine the Degree of Operating Leverage. 3. Determine the Degree of Total Leverage.