The following information is to be used for solving Questions 11 through 14 below. Nepean Transit Company has a residual dividend policy, and it maintains a debt to equity ratio of 1 . It recently declared earnings (net income) of $35 million. As part of its future light rail expansion plans, it is considering investing $40 million to extend its rail line to Barhaven. It currently has 5 million shares outstanding, and they are currently selling at $100 per share. Question 11 ( 2 points) Assuming Nepean Transit does not plan to raise any new equity financing, how much can it borrow by issuing new debt? $12.5 million $15.5 million $20.0 million $25.3 million $35.2 million Question 12 ( 2 points) How much would its dividend per share be, assuming that Nepean Transit Company has a residual dividend policy? $2.5$3.0$3.5$1.5$5.3 Question 13 ( 2 points) Assume that Nepean plans to pay $4 per share in dividends (this is not necessarily the answer to the previous question) and its current stock price is $100 per share, what would be the stock price after the dividend has been paid? $104$96$103$100$90 Question 14 (2 points) Instead of investing in a new Barhaven expansion and paying out a dividend, Nepean Transit decides to use its net income ( $35 million) to buy-back some of its shares at $100 per share. How many shares i) can it buy back; and ii) will it have remaining? i) 435,000 ; ii) 4,565,000 i) 650,000 ; ii) 4,350,000 i) 432,292 ; ii) 4,567,708 i) 277,083; ii) 4,322,917 i) 350,000 ; ii) 4,650,000