Question 4 (10 points) A firm with existing debt of $9.0 million at a cost of 7% wants to raise more debt to finance a plant expansion of $10.0 million. The bank would be willing to lend the firm additional funds, but only if the firm can keep its EBIT/Interest Coverage multiple at or below 3.0x. The firm's tax rate is 40%. Question 1: Show your work to show how much additional debt the firm could raise at an interest rate of 8% and still keep its coverage multiple at no more than 3.0 times. Question 2: How much debt could the company raise if the interest rate of the new debt was 10% instead of 8%? The firm's existing EBIT is $5.0 million Question 3: Under both the new debt scenarios (above), can the company go forward with the $10 million plant expansion. Please explain your answer - don't just answer yes or no. (10 Marks)