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Delsing Canning Company is considering an expansion of ins facilites. its current income stotement is as follows: The compary is currenty financed wath 50 percent debt and 50 percent equty (common stock, por volue of 510 in in order to expend the facitities. Mr. Delsing estimases a need for 544 mition in odditional finoncing hit investment bonker nas laid cut three plans for him to conslder: 1. Seil 54.4 million of debt at 14 percent, 2. Sell $44 m. on of comman stock ar $20 per shore. 3. Sel $220 mition of cetot ot 13 percent and $220 milion of common utock at $25 per share Vorioble costs are expected to stay at 50 percent of cotes. whise fiec expences whi nciesse to 42,640,000 pet yest Deleng is not following riliens, l.e. 51,234,5677 the focitizes, Mr, Delsing estimates a meed for $4.4 million in additional financing. His irwestment banker has laid out three plang for him to consider. 1. Sell $4.4 million of debt at 14 percent 2. Sell $4.4 tillion of common stock at $20 per share. 3. Sell $220 milion of debt at 13 percent and $2.20 million of common stock as $25 per chare. Vatable costs are expected to stay at 50 percent of cales. While fixed expenses wil increase to $2.540,000 per yesc Delsing is not sure how much this expansion will add to saies, but he estmates that saves wit rise by $1 mvilion per year for the next five years. Delsing is interested in a thorough analysis of his expansion plans and methoes of financing He would like you to anolyze the following: mililons, 1.e, $1,234,567. exosnsion Use the formulis. DOL 5 - TVC) (5 - TVC - FC). (Round your enswers to 2 decimel pieces.) c-1. The degree of financial leverage before expansion. (Round your answer to 2 declmal ploces.) c.2. The degree of financial leverage for all three methods after exponsion, Assume sales of $8.4 milition for this question. (Round your onswers to 2 decimol pleces.) c.2. The degree of financial leverage for all three methods after expansion. Assume sales of 58.4 mition for this question (Aound your onswers to 2 decimal places.) yean. (Aound yout onswers to 2 encimal ploces.)