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und-off your final answers to 2 decimal places a. Assume NLI raises $100 million of new debt at the end of 2021 at an interest
und-off your final answers to 2 decimal places a. Assume NLI raises $100 million of new debt at the end of 2021 at an interest rate of 7%. Calculate NLl's expected EPS and estimated stock price per share for 2022 if cost of equity is expected to increase to 16.80% 100% debt financing: expected EPS 100% debt financing: estimated stock price b. Assume NLI sells 2 million new shares at $50 a share to finance the $100 million investment. Calculate expected EPS and estimated stock price per share for 2022 if cost of equity is expected to remain at 13.30% 100% equity financing: expected EPS 100% equity financing: estimated stock price c. Assume NLI raises $50 million of new debt with interest rate of 7% and sell 1 million new shares at $50 each to raise the other $50 million investment. Calculate expected EPS and estimated stock price per share for 2022 if cost of equity is expected to increase to 14.75% 50% debt and 50% equity financing: expected EPS 50% debt and 50% equity financing: estimated stock price
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