You are CEO of a high-growth technology firm. You plan to raise $140 million to fund a planned expansion by issuing either new shares or new debt. With the expansion, you expect earnings next year of $25 million. The firm currently has 10 million shares outstanding, with a price of $63 per share. Assume perfect capital markets a. If you raise the $140 million by selling new shares, what will the forecast for next year's earnings per share be? b. If you raise the $140 million by issuing new debt with an interest rate of 8%, what will the forecast for next year's earnings per share be? c. What is the firm's forward P/E ratio (that is, the share price divided by the expected earnings for the coming year) if it issues equity? What is the firm's forward PIE ratio if it issues debt? How can you explain the difference? a. If you raise the $140 million by selling new shares, what will the forecast for next year's earnings per share be? If you raise the $140 million by selling new shares, next year's EPS will be $ 2.05 per share. (Round to the nearest cent.) b. If you raise the $140 million by issuing new debt with an interest rate of 8%, what will the forecast for next year's earnings per share be? If you raise the $140 million by issuing new debt with an interest rate of 8%, the new EPS will be $ 1.38. (Round to the nearest cent.) c. What is the firm's forward P/E ratio (that is, the share price divided by the expected earnings for the coming year) if it issues equity? What is the firm's forward PIE ratio if it issues debt? How can you explain the difference? What is the firm's forward P/E ratio if it issues equity? What is the firm's forward P/E ratio if it issues debt? Ratio Forward P/E ratio for equity (Round to the nearest integer.) Forward P/E ratio for debt (Round to the nearest integer.)