12. Willan Company had $695,000 of assets (which equaled total invested 5 points capital), and it used no debt; it was financed only with common equity. The new CFO wanted to employ enough debt to raise the total debt to total capital ratio to 40%, using the proceeds from borrowing to buy back common stock at its book value. How much should the firm borrow to achieve the target total debt to total capital ratio?* $219,620 O $278,000 O $294,680 O $417,000 O None of the above 5 points 13. Bronze Corporation recently reported $130,000 of sales, $75,500 of operating costs (excluding depreciation), and $10,200 of depreciation. The company had $16,500 of outstanding bonds that carry a 6% interest rate, and its federal-plus-state income tax rate was 30%. The firm used the same depreciation expense for tax and stockholder reporting purposes. How much was the firm's net income? O $12,993 $30,317 $31,010 $43,310 None of the above