The Lopez$-$Portillo Company has $$10\mathrm{.}6$ million in assets, $80$ percent financed by debt and $20$ percent financed by common stock. The interest rate on the debt is $9$ percent and the par value of the stock is $$10$ per share. President Lopez$-$Portillo is considering two financing plans for an expansion to $$18$ million in assets.

Under Plan A$,$ the debt$-$to$-$total$-$assets ratio will be maintained, but new debt will cost a whopping $12$ percent! Under Plan B$,$ only new common stock at $$10$ per share will be issued. The tax rate is $40$ percent

a$.$ If EBIT is $9$ percent on total assets, compute earnings per share $($EPS$)$ before the expansion and under the two alternatives.

Note: Round your answers to $2$ decimal places.

$\backslash$table$[[,\backslash$table$[[$Earnings per$],[$Share$]]],[$Current$,],[$Plan A$,],[$Plan B$,]]$

b$.$ What is the degree of financial leverage under each of the three plans?

Note: Round your answers to $2$ decimal places.

$\backslash$table$[[,\backslash$table$[[$Degree of Financial$],[$Leverage$]]],[$Current$,],[$Dinm $A,]]$