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9) Suppose that to raise the funds for the initial investment the firm borrows $40,000 at the risk fr rate and issues new equity to cover the remainder. In this situation, the cash flow that equity holders will receive in one year in a strong economy is closest to: A) $117,000 B) $50,000 C) $0 D) $75,000 10) Which of the following did NOT contribute to the Great Recession of 2007-2009 A) The liquidity crisis that resulted when banks became unwilling to lend into a collapsing market. B) The tremendous growth of the sub-prime lending market. D) All of the above contributed to the Great Recessio are 12.1: Selected information for Crane Manufacturing Inc. ALL EQUITY EQUITY AND DEBT nber of shares rest expense rate = 30% 500,000 $0 300,000 $100,000 11) L CeGiven the information in Figure 12.1, what is the break-even EBIT-EPS for Crane Manufacturing Inc.? A) EBIT = $350,000 and EPS = $0.45 B) EBIT= $250,000 and EPS = $0.35