I. ATD Co. and MYM Co. are identical firms in all respects except for their capital structure. ATD is all-equity financed with $1,000,000 in stock. MYM uses both stock and perpetual debt; its stock is worth $500,000 and the interest rate on its debt is 10%. Both firms expect EBIT to be $100,000. Ignore taxes. You own $50,000 worth of ATD's stock. Show how you could generate exactly the same cash flows by investing in MYM and using homemade leverage. II. A corporation is evaluating an extra dividend versus a share repurchase. In either case, $10,000 would be spent. Current earnings are $2 per share, and the stock currently sells for $80 per share. There are 1,000 shares outstanding. Show that the price-to-earnings P/E ratio is the same under the two scenarios? I. ATD Co. and MYM Co. are identical firms in all respects except for their capital structure. ATD is all-equity financed with $1,000,000 in stock. MYM uses both stock and perpetual debt; its stock is worth $500,000 and the interest rate on its debt is 10%. Both firms expect EBIT to be $100,000. Ignore taxes. You own $50,000 worth of ATD's stock. Show how you could generate exactly the same cash flows by investing in MYM and using homemade leverage. II. A corporation is evaluating an extra dividend versus a share repurchase. In either case, $10,000 would be spent. Current earnings are $2 per share, and the stock currently sells for $80 per share. There are 1,000 shares outstanding. Show that the price-to-earnings P/E ratio is the same under the two scenarios