You and your colleague, Jennah, are currently participating in a finance Internship program at Carter Chemical Company. Your current assignment is to work together to review Carter'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 riskness, After much discussion, you and Jennah decide to calculate Carter's degree of operating leverage (DOL), degree of financial leverage (BFL), and degree of total leverage (DTU) based on this year's data to gain insights into Carter's risk levels. The most recent income statement for Carter Chemical Company follows. Carter is funded solely with debt capital and common equity, and it has 3,000,000 shares of common stock currently outstanding. Sales This Year's Data $40,000,000 20,000,000 $20,000,000 Less: Variable costs Gross profit Less: Faced operating costs Net operating income (EBIT) Less: Interest expense Taxable income (EBT) Less: Tax expense (40%) Net Income Earnings per share (EPS) Next Year's Projected Data $43,200,000 21.600,000 $21,600,000 8,000,000 $13,500,000 800.000 $12,800,000 8.000.000 312,000,000 300.000 $11,200,000 4,480,000 5.120,000 7.680.000 56,720,000 52.24 $2.56 Net Income Earnings per share (EPS) 56,720,000 $2,24 7.600.000 32.56 freds A-Z Given this information, complete the following table and then awer the questions that follow. When performing your computations, round your EPS value and the percentage change values to we decimal places Carter Chemical Company Data DOL (Sales - $40,000,000) DFL (EBIT - $12,000,000) DTL. (Sales - 340,000,000) Everything else remaining constant, assume Carter Chemical Company decides to 520,000 shares oferred stock that would say 14 Dershan per year cash dividends. How would this affect Carter DOLDFL DC? The DOL would be expected to The OFL would be expected to The OT would be expected to