Please help me find the solution to these problems. No explantion is requires as long as the answers are correct.

17' \\que: 4.00 points Delsing Canning Company is considering an expansion of its facilities Its current income statement is as follows: Sales 3 6,800,000 Variable costs (50% of sales) 3,400,000 Fixed costs 1,980,000 Earnings before interest and taxes (EEIT) $ 1,420,000 Interest (10% cost) 560.000 Eamings before taxes (EBT) $ 860,000 WW) Earnings after taxes (EAT) $ 602,000 Shares of common stock 380,000 Earnings per share $ 1.58 The company is currently nanced with 50 percent debt and 50 percent equity (common stock, par value of $10). In order to expand the facilities. Mr. Delsing estimates a need for $3.8 million in additional nancing. His investment banker has laid out three plans for him to consider: 1, Sell $3.8 million of debt at 14 percent. 2. Sell $3.8 million of common stock at $20 per share. 3. Sell $1.90 million of debt at 13 percent and $1.90 million of common stock at $25 per share. Variable costs are expected to stay at 50 percent of sales, while xed expenses will increase to $2,480,000 per year. Delsing is not sure how much this expansion will add to sales, but he estimates that sales will rise by $1.90 million per year for the next ve years. Delsing is interested in a thorough analysis of his expansion plans and methods of nancingtHe would like you to analyze the following: a. The break-even point for operating expenses before and after expansion (in sales dollars). (Enter your answers In dollars not In mllllons. I.e. $1,234,567.) Break-Even Point Before expansion After expansion b. The degree of operating leverage before and after expansion. Assume sales of $6.8 million before expansion and $7.8 million after expansion, Use the formula: DOL = (S - TVC) I (S - TVC - FC). (Round your answers to 2 decimal places.) Degree of Oporatlng Leverag- Before expansion After expansion o-1. The degree of nancial leverage before expansion. (Round your answers to 2 decimal places.) Degree of nancial leverage I I h. The degree of operating leverage before and alter expansion. Assume sales of $6.8 million before expansion and $7.8 million after expansion, Use the formula: DOL = (S - TVC) / (S - TVC - FC). (Round your answers to 2 decimal places.) Degree of Operating Leverage Before expansion After expansion 0-1. The degree of nancial levelage before expansion. (Round your answers to 2 decimal places.) Degree of nancial leverage I c-Z. The degree of nancial leverage for all three methods after expansion. Assume sales of $7.8 million for this question. (Round your answers to 2 decimal places.) Degree of Flnanolal Leverage 100% Debt 100% Equity 50% Debt & 50% Equity d. Compute EPS under all three methods of nancing the expansion at $7.8 million in sales (rst year) and $10.7 million in sales (last year). (Round your answers to 2 decimal places.) Eamlngs per Share 100% Debt 100% Equity 16. value: 3.00 points The Lopez-Portillo Company has $10.1 million in assets, 90 percent nanced by debt and 10 percent nanced by common stock. The interest rate on the debt is 14 percent and the par value of the stock is $10 per share. President Lopez-Portillo is considering two nancing plans for an expansion to $15.5 million in assets. Under Plan A, the debt-to-total-assets ratio will be maintained, but new debt will cost a whopping 16 percent! Under Plan B, only new common stock at $10 per share will be issued. The tax rate is 30 percent. a. if EBIT is 16 percent on total assets, compute earnings per share (EPS) before the expansion and under the two alternatives. (Round your answers to 2 decimal places.) Current Plan A Plan B b. What is the degree of nancial leverage under each of the three plans? (Round your answers to 2 decimal places.) Degree of Financial Leverage cum Plan B c. If stock could be sold at $20 per share due to increased expectations for the rm's sales and earnings. what impact would this have on earnings per share for the two expansion alternatives? Compute earnings per share for each. (Round your answers to 2 decimal places.) Eamlngs p r Share Plan A Plan B