Problem 5-24 Leverage and sensitivity analysis [LO5-6] Edsel Research Labs has $26.00 million in assets. Currently half of these assets are financed with long-term debt at 6 percent and half with common stock having a par value of $10. Ms. Edsel, the Vice President of Finance, wishes to analyze two refinancing plans, one with more debt (D) and one with more equity (E). The company earns a return on assets before interest and taxes of 6 percent. The tax rate is 35 percent. Under Plan D, a $6.50 million long-term bond would be sold at an interest rate of 9 percent and 650,000 shares of stock would be purchased in the market at $10 per share and retired. Under Plan E, 650,000 shares of stock would be sold at $10 per share and the $6,500,000 in proceeds would be used to reduce long-term debt. a-1. How would each of these plans affect earnings per share? Consider the current plan and the two new plans. (Round your answers to 2 decimal places.) Earnings per Share Current Plan D Plan E