The Lopez-Portillo Company has11.5 million in assets. 70 percent financed by debt and 30 percent financed by common stock. The interest rate 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 $22.5 million in assets Under Plan A the debt-to-total assets ratio will be maintained but new debt will cost al whopping 16 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 12 percent on total assets, compute eamings per share (EPS) before the expansion and under the two alternatives. (Round your answers to 2 decimal places.) Earnings per Share Plan A Plan B b. What is the degree of financial leverage under each of the three plans? (Round your answers to 2 decimal places.) Degree of F Plan A Plan B c. If stock could be sold at $20 per share due to increased expectations for the firm's sales and earnings, what impact would this have on earnings per share for the two expansion alternatives? Compute earnings per share for eac(Round your answers to 2 decimal places.) Earnings per Share Plan A Plan B