Homework: Ch 14 HW Save Score: 0 of 2 pts 13 of 13 (12 complete) HW Score: 91.11%, 27.33 of 30 pts 0 X P14-22 (similar to) Question Help You are CEO of a high-growth technology firm. You plan to raise $180 million to fund a planned expansion by issuing either new shares or new debt. With the expansion, you expect earnings next year of $26 million. The fim currently has 15 million shares outstanding, with a price of $87 per share. Assume perfect capital markets. a. If you raise the $180 million by selling new shares, what will the forecast for next year's eamings per share be? b. If you raise the $180 million by issuing new debt with an interest rate of 7%, what will the forecast for next year's earnings per share be? G. What is the firm's forward P/E ratio (that is, the share price divided by the expected earnings for the coming year) if it issues equity? What is the firm's forward P/E ratio if it issues debt? How can you explain the difference? a. If you raise the $180 million by selling new shares what will the forecast for next year's eamings per share be? If you raise the S180 million by selling new shares, next year's EPS will be s per share. (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer. ? 3 parts remaining Clear All Check