financial leverage 17-15 Gordon's Plants has the following partial income statement for 2009: a. If Gordon's has no preferred stock, what is its financial breakeven point? Earnings before interest and taxes Interest Earnings before taxes Taxes (40%) Net income Number of common shares $4,500 (2.000) $2,500 (1,000) $1.500 1,000 Show that the amount you come up with actually is the financial breakeven by re-creating the portion of the income statement shown here for that amount b. What is the degree of financial leverage for Gordon's? What does this value mean? c. If Gordon's actually has preferred stock that requires payment of dividends equal to $600, what would be the financial breakeven point? Show that the amount you compute is the financial breakeven by re-creating the portion of the income statement shown here for that amount. What is the degree of financial leverage in this case