QUESTION 11 points Save Answor Companics generate income from their "regular" operations and from other sources like interest earned on the securities they hold, which is called non- operating income. Lindley Textiles recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,000 of depreciation. The company had no amortization charges and no non-operating income. It had S8 000 of bonds outstanding that carry a 7.5% interest rate and its federal-plus-state income tax rate was 40%. How much was Lindley's operating income, or EBIT? O a. $3,462 O b. $3,836 $3,644 Od.$4,038 O e. $4,250 QUESTION 12 1 points Save Answer Olivia Hardison, CFO of Impact United Athletic Designs, plans to have the company issue $500 million of new common stock and use the proceeds to pay off some of its outstanding bonds. Assume that the company, which does not pay any dividends, takes this action, and that total assets, operating income (EBIT), and its tax rate all remain constant. Which of the following would occur? O a. The company's taxable income would fall 0 b.The company would have less common equity than before. Oc. The company's interest expense would remain constant. d. The company's net income would increase. Oe. The company would have to pay less taxes