The Lopez-Portillo Compeny has $10.2 million in assets, 80 percent financed by debt and 20 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 fnancing plans for an expansion to $16 million in assets. Under Plan A, the debl-to-total-assets ratio will be maintained, but new debt will cost a whopping 15 parcent! Under Plan B, only new common stock at $10 per share will be issued. The tax rate is 35 percent a. If EBIT is 14 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 Current 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 Financial Current 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 altematives? Compute earnings per share for each. (Round your answers to 2 decimal places.) Earnings per Plan B