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Unibloc Inc. currently sells 5.6 million construction set toys per year at a price of $39.95 each. The company has $13.9 million in debt with

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Unibloc Inc. currently sells 5.6 million construction set toys per year at a price of $39.95 each. The company has $13.9 million in debt with an average coupon rate of 6% and 15 million shares outstanding, which trade at $63.63. The company's average tax rate is 29%. The company plans to modernize its production process. The new machines will cost $8.3 million and will reduce the variable cost per unit to $29.96, while increasing fixed costs, including depreciation, to $18.4 million. Sales will be unaffected. They company could rais $8.3 million by borrowing at an interest rate of 6% or by selling more shares at the current stock price. Part 1 IB Attempt 1/10 for 10 pts. What would be EPS if the investment is financed with debt? 2+ decimals Submit Part 2 B A ttempt 1/10 for 10 pts. What would be EPS if the investment is financed with equity? 2+ decimals Submit Part 3. 1 B | Attempt 1/10 for 10 pts. What number of units sold will lead to the same EPS with debt financing and equity financing (in million)? 1+ decimals Submit

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