Question 8 - [10 points] IJK has the following capital structure: 45 million shares of common stock and $250 million debt with an interest rate of 8%. The firm's marginal tax rate is 40%. The company is planning an expansion and has two alternative financing plans: Plan E: Common equity financing. An additional 5 million shares of common stock will be sold at $15 each. Plan D: a mix of Equity & Debt financing. The firm would sell $45 million of subordinated bonds with a pretax cost of 12 percent and an additional 2 million shares of common stock will be sold at $15 each. a. What is IJK's indifference point between these two alternatives? b. Which Plan do you recommend IJK to pick if their EBIT is known to be $105 million