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First part is self-explanatory, last part wants to know whether the DOL,DFL, and DCL would increase, decrease or remain constant with the repayment of 50%

image text in transcribedFirst part is self-explanatory, last part wants to know whether the DOL,DFL, and DCL would increase, decrease or remain constant with the repayment of 50% of a bank loan prior to its maturity. Will thumbs up for both parts, thanks.

The most recent income statement for Carter Chemical Company follows. Carter is funded solely with debt capital and common equity, and it has 3,000,000 shares of common stock currently outstanding. Sales Less: Variable costs Gross profit Less: Fixed operating costs Net operating income (EBIT) Less: Interest expense Taxable income (EBT) Less: Tax expense (40%) Net income Earnings per share (EPS) This Year's Data Next Year's Projected Data $40,000,000 $43,200,000 20,000,000 21,600,000 20,000,000 21,600,000 8,000,000 8,000,000 12,000,000 13,600,000 800,000 800,000 11,200,000 12,800,000 4,480,000 5,120,000 $6,720,000 7,680,000 $2.24 $2.56 Given this information, complete the following table and then answer the questions that follow. When performing your computations, round your EPS value and the percentage change values to two decimal places. Carter Chemical Company Data DOL (Sales = $40,000,000) DFL (EBIT = $12,000,000) DTL (Sales = $40,000,000) Everything else remaining constant, assume Carter Chemical Company decides to immediately repay 50% of a bank loan prior to its maturity. How would this affect Carter's DOL, DFL, and DCL

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