QUESTION 4 Eagle Sports Company (ESC) had net income of $6 million on sales of $50 million last year. The firm paid a dividend of $12 million. Total assets were $120 million of which $40 million was financed by debt. ESC has no spare capacity. The firm's financial planners forecast that total sales next year will increase by 10% from this year's level. IESC chooses not to issue new shares of stocks and maintains a 1/2 debt-to equity ratio, how much new debt will be issued? O A $10 million OB. 58 million OC. $6 million D. $4 million QUESTION 5 During the year the following changes were observed