Chapter 12 Assignment The most recent income statement for Torres Industries follows. Torres is funded solely with debt capital and common equity, and it has 2,000,000 shares of common stock currently outstanding Less: Variable costs Gross profit Less: Fixed operating costs Net operating income (EBIT) Less: Interest expense Taxable income (EBT) Less: Tax expense (40%) Net income Earnings per share (EPS) This Year's Data $80,000,000 32,000,000 48,000,000 28,000,000 20,000,000 4,000,000 16,000,000 6,400,000 $9,600,000 $4.80 Next Year's Projected Data $86,000,000 34,400,000 51,600,000 28,000,000 23,600,000 4,000,000 19,600,000 7,840,000 $11,760,000 $5.88 Given this information, complete the following table and then answer the questions that follow. When performing your calculations, round your EP: and percentage change values to two decimal places Torres Industries Data DOL (Sales-$80,000,000) DFL (EBIT = $20,000,000) DTL (Sales$80,000,000) Everything else remaining constant, assume Torres Industries decides to sell 520,000 shares of preferred stock that would pay $4 per share per y in cash dividends. How would this affect Torres's DOL, DFL, and DCL? The DOL would be expected to . The DFL would be expected to The DTL would be expected to Screenshot Chapter 12 Assignment The most recent income statement for Torres Industries follows. Torres is funded solely with debt capital and common equity, and it has 2,000,000 shares of common stock currently outstanding Less: Variable costs Gross profit Less: Fixed operating costs Net operating income (EBIT) Less: Interest expense Taxable income (EBT) Less: Tax expense (40%) Net income Earnings per share (EPS) This Year's Data $80,000,000 32,000,000 48,000,000 28,000,000 20,000,000 4,000,000 16,000,000 6,400,000 $9,600,000 $4.80 Next Year's Projected Data $86,000,000 34,400,000 51,600,000 28,000,000 23,600,000 4,000,000 19,600,000 7,840,000 $11,760,000 $5.88 Given this information, complete the following table and then answer the questions that follow. When performing your calculations, round your EP: and percentage change values to two decimal places Torres Industries Data DOL (Sales-$80,000,000) DFL (EBIT = $20,000,000) DTL (Sales$80,000,000) Everything else remaining constant, assume Torres Industries decides to sell 520,000 shares of preferred stock that would pay $4 per share per y in cash dividends. How would this affect Torres's DOL, DFL, and DCL? The DOL would be expected to . The DFL would be expected to The DTL would be expected to Screenshot