Question 2 (20%, 10% per sub question) Answer the following questions based on the information provided in the table Interest Expense Preferred Dividend Common Shares Outstanding Plan 1 $25,000 $3,000 200,000 Plan 2 $50,000 $1,500 100,000 a. What is the degree of financial leverage at a base level EBIT of $120,000 for both financing plans? The firm has a 40 percent tax rate. b. What is the EPS for both Financing Plan 1 and Plan 2. if the firm projects EBIT of $200.000 and has a tax rate of 40 percent