Scenario 1: Black and White Company (B&W) is considering financing alternatives for the acquisition of the assets of Shades of Gray Company (SoG). The purchase price is $100 million. B&W has narrowed its financing options to two: (1) $30 million in debt and $70 million in equity and (2) $60 million in debt and $40 million in equity. B&W expects SoG's assets to generate $400 million in revenue and that it will add Income before interest and taxes of $12.5 million to B&W's. The interest rate on the new debt is 8% and the income tax rate is 20%. Which financing alternative should B&W choose if the goal is to maximize return to its shareholders? Scenario 2: Assume the same facts, except one. What if SoG's operations only generate $300 million in revenue and $7 million in Income before interest and tax?