You are evaluating two financing plans for your client. After meeting their CFO you gathered the following information. Current operations (All $ figures are in 000 so $1,000 means $1Million) The company has $1,000 of Sales. It is estimated that the Variable costs are 10% of the revenues. The company is capital intensive and currently have Fixed costs of $600. In addition, interest expense on the current debt is $100 and the applicable tax rate is 40% Future Plans It is estimated that the future plan will result in an expected growth rate of 20% (Use that fact for part b only) The company decided to go ahead with the plan and is evaluating two possible financing plans Plan A removing all finance charges repay all the debt and finance exclusively through equity Plan B maintain the existing leverage structure Required a/ Calculate the Operating Income, Profit before tax, DOL, DFL, DCL and Net profit under both plans using this years numbers b/ Based on the fact that the expected growth rate of 20% Calculate the Operating Income, Profit before tax, DOL, DFL, DCL and Net profit under both plans c/ What would be the difference on the Earnings Per Share EPS under both plans if the company has 100,000 common shares outstanding.