A company needs $35,943,750 to finance a major project in the company. The company expects that next years earnings from current operations and the additional earnings from the new project will be a total of $45,650,000. The company currently has 5,075,000 shares outstanding, with a price of $17.75 per share. The companys management is assuming that any the additional shares issued to finance the project will not affect the market price of the companys common stock. Calculate the following:

If the $35,943,750 needed for the project is raised by selling new shares, what will the forecast for next years earnings per share (EPS) be?

If the $35,943,750 needed for the project is raised by selling new shares, what will the firms price earnings ratio (PE ratio) be?

If the $35,943,750 needed for the project is raised by issuing new debt, what will the forecast for next years earnings per share be? (Assume that there is no tax shield effect with issuing corporate debt.)

If the $35,943,750 needed for the project is raised by issuing new debt, what will the firms PE ratio be?