need an solution for part D ( eps for last year)

Phelps Canning Company is considering an expansion of its facilities. Its current income statement is as follows: $ Sales essVariable expense (50% of sales) Fixed expense Earnings before interest and taus (ET) Interest (10% cost) Earnings before taxes (ET) Tax (1) Earnings after taxes (LAT) Shares of common stock EPS 5.000.000 2.500.000 1.100.000 700.000 500.000 170.000 5 200,000 1.65 Phelps Canning Company is currently financed with 50 percent debt and 50 percent equity (common stock), To expand facilities. Me Phelps estimates a need for $2 million in additional financing. His Investment dealet has laid out three plans for him to consider: 1. Sell $2 million of debt at 13 percent 2. Sell $2 million of common stock at $20 per share 3. Sell $1 million of debt at 12 percent and $1 million of common stock at $25 per share. Variable costs are expected to stay at 50 percent of sales, while fixed expenses will increase to $2.300.000 per year McPhelps is not sure how much this expansion will add to sales, but he estimates that sales will rise by $1 million per year for the next five years. Me Phelps is interested in a thorough analysis of his expansion plans and methods of financing a. Compute the break-even point for operating expenses before and after expansion in sales dollars). (Enter your answers in dollars, not in million of dollars.) Break-even point before expansion Break-even point after expansion $3600000 $4600000 b. Compute the degree of operating leverage (DOC) before and after expansion Assume sales of $5 milion before expansion and 56 million after expansion (Round the final onswer to 2 decimal places) 10 pa DOL before expansion Dolor spansion 4.29 c. Compute the degree of financial leverage (DF) before expansion at sales of $5 million and for all three methods of financing the expansion. Assume sales of $6 million for the second part of this question, (Round the final answer to 2 decimal places) 1.4 22 DFL before expansion DFL after expansion 1005 Debt DHL after pansion 100% fity DFL atter expansion or Debt and it S 1. 104 d. Compute EPS under all three methods of financing the expansion at $6 million in the fest year) and $10 million in a year) (Round the final answer to 2 decimal places.) Det Equity 5 $ 0.792 EPS for the first year 1.10 $ 3.4 54.12 O 2.392 . EPS for the last year OO 1