You and your colleague, Jennah, are currently participating in a finance internship program at Campbell Construction. Your current assignment is to work together to review Campbell’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 Campbell’s degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of total leverage (DTL) based on this year’s data to gain insights into Campbell’s risk levels. The most recent income statement for Campbell Construction follows. Campbell is funded solely with debt capital and common equity, and it has 2,000,000 shares of common stock currently outstanding. This Year’s Data Next Year’s Projected Data Sales$80,000,000$86,000,000 Less: Variable costs32,000,00034,400,000 Gross profit48,000,00051,600,000 Less: Fixed operating costs28,000,00028,000,000 Net operating income (EBIT)20,000,00023,600,000 Less: Interest expense4,000,0004,000,000 Taxable income (EBT)16,000,00019,600,000 Less: Tax expense (40%)6,400,0007,840,000 Net income$9,600,000$11,760,000 Earnings per share (EPS)$4.80$5.88 Given this information, complete the following table and then answer the questions that follow. When performing your calculations, round your EPS and percentage change values to two decimal places. Campbell Construction Data DOL (Sales = $80,000,000) DFL (EBIT = $20,000,000) DTL (Sales = $80,000,000) Everything else remaining constant, assume Campbell Construction decides to sell 520,000 shares of preferred stock that would pay $4 per share per year in cash dividends. How would this affect Campbell’s DOL, DFL, and DCL? • The DOL would be expected to . • The DFL would be expected to . • The DTL would be expected to .