8. A broker wants to sell a customer an investment costing S 100 with an expected payoff in one year of $106. The customer indicates that a 6 percent return is not very attractive. The broker responds by suggesting the customer borrow $90 for one year at 4 percent interest to help pay for the investment. a. W b. Does borrowing the money make the investment more attractive? c. What does the Irrelevance Proposition say about whether borrowing the hat is the customer's expected return if she borrows the money? money makes the investment more attractive? 9. Explain how each of the following changes will affect a company's range of earnings chart such as that shown in Figure 6.2. How would each of the changes affect the attractiveness of increased debt financing relative to increased equity financing? a. An increase in the interest rate on the new debt to be raised. b. An increase in the company's stock price. c. Increased uncertainty about the issuing company's future earnings. d. Increased cash dividends paid on common stock. e. An increase in the amount of debt the company already has outstanding