in the would be expected part all have the same options increase or decrease or remain constant.

please solve first part as well.

Chapter 12 ASSI 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 total leverage (DTL) 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 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 costs 32,000,000 34,400,000 $51,600,000 Gross profit $48,000,000 Less: Fixed operating costs 28,000,000 28,000,000 Net operating income (EBIT) $20,000,000 $23,600,000 Less: Interest expense 4,000,000 4,000,000 Taxable income (EBT) $ 16,000,000 $19,600,000 Less: Tax expense (40%) 6,400,000 7,840,000 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. Ironworks Railroad Data = DOL (Sales $80,000,000) DFL (EBIT = $20,000,000) DTL (Sales = $80,000,000) Everything else remaining constant, assume Ironworks Railroad decides to immediately repay 50% of a bank loan prior to its maturity. How would this affect Ironworks's DOL, DFL, and DCL? The DOL would be expected to The DFL would be expected to The DTL would be expected to