Use the information for the question(s) below. Consider two firms, Firm X and Firm Y, that have identical assets that generate identical cash flows. Firm Y is an all-equity firm, with 1 million shares outstanding that trade for a price of $24 per share. Firm X has 2 million shares outstanding and $12 million in debt at an interest rate of 5%. Assume that MM's perfect capital markets conditions are met and that you can borrow and lend at the same 5% rate as Firm X. You have $5000 of your own money to invest and you plan on buying Firm Y stock. Using homemade leverage, how much do you need to borrow in your margin account so that the payoff of your margined purchase of Firm Y stock will be the same as a $5,000 investment in Firm X stock? O $0 $5,000 O $10,000 $2,500 Suppose a project financed via an issue of debt requires five annual interest payments of $20 million each year. If the tax rate is 21% and the cost of debt is 9%, what is the value of the interest rate tax shield? O $13.07 million $32.67 million. $16.34 million $19.60 million 2 pts Question 10 Which of the following statements is FALSE? From an accounting perspective, dividends generally reduce the firm's current (or accumulated) retained earnings. O Occasionally, a firm may pay a one-time, special dividend that is usually much larger than a regular dividend, The way a firm chooses between paying dividends and retaining earnings is referred to as its payout policy. O Most companies that pay dividends pay them semiannually