a. The company's cost of equity will increase b. The nany's return on investment will increase. c. The ny's weighted average cost of capital will increase. d. The company's earnings per share will increase e. The company's net income will increase. 15 Question 21 23 Not yet answered Marked out of 3.50 Flag Zippy Pasta Corporation (ZPC) has a constant growth rate of 4.0 percent. The company retains 33.0 percent of its earnings to fund future growth. ZPC's expected Earnings Per Share (ie. EPS at t-1) and required cost of equity for various capital structures are given in the table below. Debt/Total Cost of Expected EPS Assets capital 20% $2.62 15.00% 30% $3.17 15.50% 40% $3.62 16.00% 50% $4.14 17.00% 70% $4.37 18.00% question What is the highest stock price for these combinations of capital structure? (Give answer to 2 decimal places) Question 22 Not yet answered Tempquin Motors is an all-equity firm with a total market value of $270 million. It's annual before tax operating income (EBIT) is $35.5 million and expected to be stable for the distant future. The firm has 10 million shares outstanding. Tempquinhas no future growth opportunities so pays out all its earnings as dividends. 995 million in det at the rate of 4.6% and using the proceeds to