QUESTION 24 Whitacre Electronics wants to me its optimal capital structure of 65% equity and 35% debt. The company must in additional capital to fund is upcoming expansion and its tax rate is 4096. The firm has $2 million in retained earnings that has a cost of 12.156. Its investment bankers have informed the company that it can it up to 4 million of new common equity at a cost of 14.2%. Furthermore, the firm can raise up to $1 million of debt at 119 and an additional $5 million at 12.54. The firm has estimated that the proposed expansion will require a total investment of $5 million. What is the average ather-tax cost for all of the funds (as a whole that the company will be raining? 8.11.75 percent b.10.18 percent C10.54 percent d. 11.11 percent 9. None of the other answers is within 0.1 percent of the correct answet. QUESTION 25 At year end, Callendar, Inc. has sales revenue of 557,000,000. The company's fixed costs total $18,000,000, its variable costs are 22 percent of sales, its tax rate is 21 percent. and its interest expense is $2,000,000. If the company wants to increase its Net Income by 40 percent, how much will it need to increase in EBIT? a. 36.98 percent 6.2201 percent G 23.81 percent d.33.31 percent e 28.14 percent