Score: 0 of 2 pts 13 of 13 (1 complete) HW Score: 3.33%, 1 of 30 pts P14-22 (similar to) Question Help 0 You are CEO of a high-growth technology firm. You plan to raise $160 million to fund a planned expansion by issuing either new shares or new debt. With the expansion, you expect earnings next year of $29 million. The firm currently has 7 million shares outstanding, with a price of S69 per share. Assume perfect capital markets. a. If you raise the $160 million by selling new shares, what will the forecast for next year's eamings per share be? b. If you raise the $160 million by issuing new debt with an interest rate of 8%, what will the forecast for next year's earnings per share be? c. What is the firm's forward P/E ratio (that is, the share price divided by the expected earnings for the coming year) if it issues equity? What is the fim's forward P/E ratio if it issues debt? How can you explain the difference? a. If you raise the $160 million by selling new shares, what will the forecast for next year's eamings per share be? If you raise the $160 million by selling new shares, next year's EPS will be s per share. (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer. ? parts remaining Clear All Check