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Help Center? $300,000 O $800,000 $1,000,000 Question 20 3 pts 25% over the past ten years and If long term corporate bonds have been earning

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Help Center? $300,000 O $800,000 $1,000,000 Question 20 3 pts 25% over the past ten years and If long term corporate bonds have been earning an average the risk free rate is 2%, what would the risk premium be? 3.25% 8.25% 4.25% O 2% O 6.25% 5 pts Question 21 Classy Office Supplies Inc. is an all equity firm with $2,000,000 in equity. It has been suggested that they borrow $800,000 at 6% and use it to buy back shares of their own stock, thereby changing their capital structure. There are 100,000 shares outstanding and they currently sell for $20/share. EBIT is expected to be $1,000,000 next year. Classy is in the 21% tax bracket. What is the EPS under the current structure? What will EPS be under the proposed structure

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