Score: 0 of 1 pt 35 of 35 (10 complete) HW Score: 21.63%, 7.79 of 36 P 16-35 (similar to) Question Help Empire Industries forecasts net income this coming year as shown below in thousands of dollars) EBIT 51.000 Interest esporte 0 Income before -250 Net income $750 Approximately $200.000 of Empire's earnings will be needed to make new positive NPV investments. Unfortunately, Empire's managers are expected to waste 10% of its net income on needless perks, pot projects, and other expenditures that do not contribute to the fom. All remaining income will be distributed to shareholders a. What are the two benefits of debt financing for Empire? b. By how much would each 51 of interest expense reduce Empire's distributions to shareholders? c. What is the increase in the total funds Empire will pay to investors for each $1 of interest expense? a. What are the two benefits of debt financing for Empire? (Select the best choice below) O A Interest cost benefits and reducing wasteful investment OB Tax and interest cost benefits OC. Dividend and tax benefits OD Tax benefits and reducing wastelul investment