answer it please

22. You work for the CEO of a new company that plans to manufacture and sell a new product, a watch that has an embedded TV set and a magnifying glass crystal. The issue now is how to finance the company, with only equity or with a mix of debt and equity. Expected operating income is $400,000. Other data for the firm are shown below. How much higher or lower uses some debt rather than all equity, i.e, what is ROEL- ROE? will the firm's expected ROE be if it Operating Income (EBIT) Required investment % Debt (weight of) s of Debt s of Common equity Interest rate Tax rate 0% Debt, U $400,000 $2,500,000 0.0% s0.00 $2,500,000 NA 35% 60% Debt, L $400,000 $2,500,000 60 , 0% $1,500,000 1,000,000 7.50% 35% A. 5.85% B.6. 14% C. 6.95% D. 7.77% E. 8.29% 23. With the same information from question 25, if the stock price is $125 per share, what would be the earnings per share under the leveraged capital structure? A. $13.00 B. $16.25 C. $19.50 D. $21.67 E. $23.36