QUESTION 27 If debt financing is used, which of the following is CORRECT? The percentage change in net operating income will be equal to a given percentage change in net income. The percentage change in net income relative to the percentage change in net operating income will depend on the dividends. The percentage change in net income will be greater than the percentage change in net operating income. The percentage change in sales will be greater than the percenige change in EBIT, which in turn will be greater than the percentage change in net income The percentage change in net operating income will be greater than a given percentage change in net income. QUESTION 28 Julian is considering purchasing the stock of Pepsi Cola because he really loves the taste of Pepsi. What should Julian be willing to pay for Pepsi today if it is expected to pay a $220 dividend in one year and he expects dividends to grow at 5 percent indefinitely? Julian requires a 12 percent return to make this investment $28.57 $29.33 $31.43 $43.14