Qn.2 Debt and Equity capital for XY2 company Amount of new debt (in Millions) The following information about the cost and availability of raising various amounts of new Cost of Equity Amount of new eqity (in Millions) Cost of debt (After Tax) 20% s PKR 50 14 % S PKR 40 22% PKR 50 16% PKR 40 The company's target capital structure is 60 % equity and 40 % debt What are the break points? Constrct the MCC schedule. Qno.2 (a) What would be the approximate cost of not taking a discount if the eredit terms of 2/10. net 40" are offered? (Assume a 365-day year). (b) Ninety-percent of XYZ's tofal sales of $600,000 is on credit. Calculate the average collection period and year-end receivables if its year-end receivables turnover is 5. Qn.2 Debt and Equity capital for XY2 company Amount of new debt (in Millions) The following information about the cost and availability of raising various amounts of new Cost of Equity Amount of new eqity (in Millions) Cost of debt (After Tax) 20% s PKR 50 14 % S PKR 40 22% PKR 50 16% PKR 40 The company's target capital structure is 60 % equity and 40 % debt What are the break points? Constrct the MCC schedule. Qno.2 (a) What would be the approximate cost of not taking a discount if the eredit terms of 2/10. net 40" are offered? (Assume a 365-day year). (b) Ninety-percent of XYZ's tofal sales of $600,000 is on credit. Calculate the average collection period and year-end receivables if its year-end receivables turnover is 5