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Empire Industries forecasts net income this coming year as shown below (in thousands of dollars): do not contribute to the firm. All remaining income will

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Empire Industries forecasts net income this coming year as shown below (in thousands of dollars): do not contribute to the firm. All remaining income will be distributed to shareholders. a. What are the two benefits of debt financing for Empire? b. By how much would each $1 of interest expense reduce Empire's distributions to shareholders? c. What is the increase in the total funds Empire will pay to investors for each $1 of interest expense? a. What are the two benefits of debt financing for Empire? (Select the best choice below.) A. Dividend and tax benefits B. Tax and interest cost benefits C. Interest cost benefits and reducing wasteful investment D. Tax benefits and reducing wasteful investment

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