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Question 3 10 Newline Electronics is considering additional financing of $20,000. It currently has $50,000 of 12% (annual interest) bonds and 10,000 shares of common stock outstanding. The firm can obtain the financing through a 12% (annual interest) bond issue or through the sale of 2,000 shares of common stock. The firm has a 40% tax rate. 1- Find the financial break-even point. (ERIT-I) (1-1) M 2- If expected EBIT is $40000, does the bond plan become superior to the stock plan? lover