This is all one problem please answer all of the blanks.

eBook The Severn Company plans to raise a net amount of $270 million to finance new equipment in early 2020, Two alternatives are being considered: Common stock may be sold to net $60 per shore, or bonds yielding 11% may be issued. The balance sheet and income statement of the Severn Company prior to financing are as follows: The Severn Company: Balance Sheet as of December 31, 2019 (millions of dollars) Current assets $ 900.00 Notes payable $ 255.00 Net fixed assets 450.00 Long-term debt (7%) 705.00 Common stock, si par 60.00 Retained earnings 330,00 Total assets 51,350.00 Total liabilities and equity $1,350.00 Sales The Severn Company: Income Statement for Year Ended December 31, 2019 (millions of dollars) $2,475.00 Operating costs 2,227.50 Earnings before interest and $ 247.50 tores (10%) Interest on short-term debt 16.50 Interest on long-term debt 49.35 Earnings before taves $ 181.05 Federal-plus-state taxes (25%) 45.41 Net income 136.24 N The probably distribution for annual sales is as follows Annual Sale Q Search this cours Ch 13: Assignment - Capital Structure and Leverage w Net income $ 1J6.24 Jols The probability distribution for annual sales is as follows: Annual Sales (Millions of Probability Dollars) 0.30 $2,250 2,700 0.30 3,150 Assuming that entt equals 15% of sales, calculate earnings per share (EPS) under the debt financing and the stock financing alternatives at each possible sales level write out your answer completely. For example, 0.00013 milion should be entered as 130. Do not round Intermediate calculations. Round your answers to the nearest 0.40 cent Annual Sales EPS under EPS under (Millions of Dollars) the debt financing the stock financing $2,250 2,700 3,150 Calculate expected to under both dutt and stock tinanong aternatives. Write out your answer completely. For example, 0.00013 mon should be entered as 130. DO not round intermediate clculations. Round your answers to the nearest cert Expected EPS under the debt financing: 5 Expected EPS under the stock financing: 5 Caleate or under both debt and stock financing alternatives. Write out your answer completely. For example, 0.00013 million should be entered as 1.30. Do not round intermediate calculations. Round your awers to the nearest cent Q Search this course Ch 13: Assignment - Capital Structure and Leverage XC Calculate expected EPS under both debt and stock financing alternatives. Write out your answer completely. For example, 0.00013 million should be entered as 130. DO not round Intermediate calculations. Round your answers to the nearest cent. ols Expected EPS under the debt financing: $ Expected EPS under the stock Tinancing: 5 Calculate os under both debt and stock financing alternatives. Write out your answer completely. For example, 0.00013 milion should be entered as 130. Do not round intermediate calculations. Round your answers to the nearest cent. Ders under the debt financing: 5 des under the stock financing: 5 Calculate the debt-to-capital ratio and the times-interest-eared (ME) ratio at the expected sales level under each alternative. The old debt will remain outstanding [Hint: Notes payable should be included in both the numerator and the denominator of the debt-to-capital ratio.] Do not round Intermediate calculations. Round your answers to two decimal places Under the debt financing: The debt ratio: Times-interest-earned ratio Under the stock financing The debt ratio Times interest earned ratio Which financing method do you recommend