Commonwealth Construction $($CC$)$ needs $$3$M of assets to get started.$$ It expects to have BEP of $35\%.$ It will own no securities; all income will be operating income.$$ If it chooses, CC can finance up to $30\%$ of its assets with debt at an $8\%$ interest rate.$$ If it uses debt, the firm will finance with debt and common equity $($no preferred$).$ Assume $25\%$ tax rate.