Use the information for the question(s) below.Fly by Night Aviation (FBNA) expects to have net income next year of $24 million and interest expense of $3 million. FBNA's corporate tax rate is 21%.

1) FBNA's EBIT is closest to:

1) _______ A) $60 million. B) $40 million. C) $33 million. D) $45 million.

2) IF FBNA increases leverage so that its interest expense rises by $1 million, then the amount its unlevered EBIT will change is closest to:

2) _______ A) $600,000. B) -$400,000. C) $400,000. D) $0.

3) Assume that investors hold Google stock in retirement accounts that are free from personal taxes. Also assume that Google's current pre-tax WACC is 14% and the corporate tax rate is 21%. If Google were to issue sufficient debt at a pre-tax cost of 7% to give them a debt-to-value ratio of 0.5, then the Google's after-tax WACC would be closest to:

3) _______ A) 15.0%. B) 10.4%. C) 13.0%. D) 12.8%. E) 16.0%.