i need you to help me to compute questions A, B, C, AND D.

i need step by step explanation plus answer thanks.

thank you.

Problem 5-25 Phelps Canning Company is considering an expansion of its facilities. Its current income statement is as follows: $ 1 Sales Less: Variable expense (50% of sales) Fixed expense Earnings before interest and taxes (EBIT) Interest (10% cost) Earnings before taxes (EBT) Tax (34%) Earnings after taxes (EAT) Shares of common stock EPS 5,000,000 2,500,000 1,800,000 700.000 200,000 500,000 170,000 330,000 200,000 1.65 ences $ $ Phelps Canning Company is currently financed with 50 percent debt and 50 percent equity (common stock). To expand facilities, Mr. Phelps estimates a need for $2 million in additional financing. His investment dealer has laid out three plans for him to consider 1. Sell $2 million of debt at 13 percent. 2. Sell S2 million of common stock at $20 per share. 3. Sell $1 million of debt at 12 percent and $1 million of common stock at $25 per share. Variable costs are expected to stay at 50 percent of sales, while fixed expenses will increase to $2.300.000 per year. Mr. Phelps is not sure how much this expansion will add to sales, but he estimates that sales will rise by $1 million per year for the next five years. Me Phelps is interested in a thorough analysis of his expansion plans and methods of financing. Saved a. Compute the break-even point for operating expenses before and after expansion (in sales dollars). (Enter your answers in dollars, not in million of dollars.) Break-even point before expansion Break-even point after expansion $ b. Compute the degree of operating leverage (DOL) before and after expansion Assume sales of $5 million before expansion and $6 million after expansion (Round the final answer to 2 decimal places.) DOL before expansion DOL after expansion c. Compute the degree of financial leverage (DFL) before expansion at sales of $5 million and for all three methods of financing after expansion. Assume sales of $6 million for the second part of this question. (Round the final answer to 2 decimal places.) DFL before expansion DEL after expansion 100% Debt DFL after expansion 100% Equity DFL after expansion 50% Debt and Equity d. Compute EPS under all three methods of financing the expansion at $6 million in sales (first year) and $10 million in sales (last year) (Round the final answer to 2 decimal places.) Debt EPS for the first year EPS for the last year Equity $ Debt and Equity $ e. Select the method for financing the expansion that best suits Mc Phelps' objective of maximizing shareholders' wealth Sest method for Financing before expansion Best method for Financing after expansion Plan 2 Plan 1 V