1. Assume that the coupon rate of the firms debt of problem 1 is 10%. This implies that the firm has $100 mm of debt outstanding. Assume also that the firm has 10 million shares outstanding and the price per common stock share is $50. Assume that the firm is considering issuing $100 mm of new debt at a coupon rate of 10% and it will use the proceed to buy back 2 million shares of common stock. Determine the break-even sales level for the two financial scenarios: one with the firm does not issue any more debt and one that it issues another $100 million of debt. (20 points)