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m Compuvac Company has just completed its first pass forecast using the projected balance sheet method. The firm has determined that it will need a

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Compuvac Company has just completed its first pass forecast using the projected balance sheet method. The firm has determined that it will need a total of $13,050,000 in external financing, which it will raise using both debt and equity. It will issue $4 million in new debt which can be sold at par with a 10% annual coupon. Additionally, the form will sell 500,000 shares of new common equity at $18.10 per share. Next year's expected dividend is $0.24 per share. The tax rate is 40%. Given this information, what is the incremental change in EFN/AFN for Compuvac going from the first pass to the second pass? $360,000 OSO $240,000 O $480,000 $160,000

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