The Lopez$-$Portillo Company has $$11\mathrm{.}9$ million in assets, $70$ percent financed by debt and $30$ percent financed by common stock. The interest rate on the debt is $13$ percent and the par value of the stock is $$10$ per share. President Lopez$-$Portillo is considering two financing plans for an expansion to $$24\mathrm{.}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.

If EBIT is $14$ 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.

plan A and B earnings per share

plan a and b degree of financial leverage