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Empire Industries forecasts net income this coming year as shown here (in thousands of dollars). Approximately 150,000 of Empire's earnings will needed to make new,

Empire Industries forecasts net income this coming year as shown here (in thousands of dollars). Approximately 150,000 of Empire's earnings will needed to make new, positive-NVP investments. Unfortunately, Empire's managers are expected to waste 10% of its net income on needless perks, pet projects, and other expenditures that do not contribute to the firm, All remaining income will be returned to shareholders through dividends and share repurchase. a. What are the two benefits of debt financing for Empire? B. By how much would each of interest expense reduce Empires dividend and share repurchase? c. What is the increase in the total funds Empire will pay to investors for each 1 dollar of interest expense?

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