You and your colleague, Jennah, are currently participating in a finance internship program at Ironworks Railroad. Your current assignment is to work together to review Ironworks's current and projected income statements. You will also assess the consequences of management's capital structure and investment decisions on the firm's future riskiness. After much discussion, you and Jennah decide to calculate Ironworks's degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of combined leverage (DCL) based on this year's data to gain insights into Ironworks's risk levels. The most recent income statement for Ironworks Railroad follows. Ironworks is funded solely with debt capital and common equity, and it has 3,000,000 shares of common stock currently outstanding. Given this information, complete the following table and then answer the questions that follow. When performing your computations, round your EPS value and the percentage change values to two decimal places. Ironworks Railroad Data DOL(Sales=$40,000,000)DFL(EBIT=$12,000,000)DCL(Sales=$40,000,000) Everything else remaining constant, assume Ironworks Railroad decides to convert its labor-intensive manufacturing facility into a capital-intensive facility by laying off over 75% of its labor force and replacing the workers with robotic and technologically advanced manufacturing equipment. Assume that, over the next five years, the wages saved as a result of the layoffs will pay for the changes made to Ironworks's plant and equipment changes. How would this affect Ironworks's DOL, DFL, and DCL? - The DOL would be expected to - The DFL would be expected to - The DCL would be expected to