Party Platters inc., a record company, is planning expansion. Its current capital structure consists of two debt issues: $50 million @ 9.25 % coupon rate, $100 million @ 10.5 % coupon rate, and 38 million shares of common stock. The expansion will require Party to finance $80 million of new investment. The firm has two options. It can borrow the needed funds at 10.75% interest, or it can sell common stock at a net price of $12.50 per share. Party's marginal tax rate is 40% under both options. What is the indifference point between the debt and equity financing options? "Indifference point = $74 313 235 bot 70 000,0012 Ismoidibbs no ll92 ot ai jdeb yldzom I svitsme IA Party Platters inc., a record company, is planning expansion. Its current capital structure consists of two debt issues: $50 million @ 9.25 % coupon rate, $100 million @ 10.5 % coupon rate, and 38 million shares of common stock. The expansion will require Party to finance $80 million of new investment. The firm has two options. It can borrow the needed funds at 10.75% interest, or it can sell common stock at a net price of $12.50 per share. Party's marginal tax rate is 40% under both options. What is the indifference point between the debt and equity financing options? "Indifference point = $74 313 235 bot 70 000,0012 Ismoidibbs no ll92 ot ai jdeb yldzom I svitsme IA