OT 5 Q.10) to Q.11), please refer to the following problem: Currently, Company ABC has the following financial parameters: EBIT = $ 8 MM Debt = $ 20 MM Interest rate = 5% Tax rate = 35% Number of common shares outstanding = 10 MM Share price = $ 10 per share The company would like to raise $ 30 MM for future capital expansion via an issue of common shares. For the project to go ahead, the projected EPS has to increase by 10% or more compared to its present value. COLLECHAT HFIP 10. To meet such an improvement, the expected EBIT has to increase by at least X % compared to its current value. What is "X"? a. X = 33 O b. X = 30 O c. X = 42 O d. X = 29 O e. X = 38 11. If the entire financing has to come from debt to achieve the same improvement on